The stock market witnessed a strong recovery from the day’s low amid volatile trading on Wednesday. The Sensex fell 303 points (or 0.41%) to close at 74,346, while the Nifty 50 fell 78 points (or 0.33%) to settle at 23,405. However, Nifty registered a spectacular recovery of about 237 points from its intraday low. Meanwhile, Bank Nifty rose 471 points (or 0.88%) to close at 54,186, led by heavy buying in banking stocks. It is noteworthy that Bank Nifty recorded a recovery of about 1,160 points from its intraday low. On the other hand, Nifty MidSelect fell 0.64%, and Nifty Smallcap 100 index fell 0.11%.
**Huge rise in banking stocks; IT sector under pressure**
On the sectoral front, banking stocks witnessed strong gains. Shares of banks like Federal Bank, Union Bank, Canara Bank and SBI rose between 3.71% and 4.08%, which supported the Bank Nifty. In contrast, the IT sector faced considerable pressure. Key components of the Nifty IT index, including TCS, Tech Mahindra, HCL Tech and LTI Mindtree, fell between 6% and 8.5%, keeping the entire sector under pressure. In the Nifty 50 index, ITC, Adani Energy Solutions, Eternal and L&T were among the top gainers. In contrast, Apollo Hospitals, Tata Motors Passenger Vehicles, Max Healthcare and Trent rose between 1% and 2.5%, emerging as the top gainers in the index.
Due to some special news, strong trading activity was seen in many stocks. Shares of John Cockerill India jumped nearly 20% after the company won a large order from JSW Vijayanagara Metalics worth between ₹1,250 crore and ₹1,300 crore. Apec Prefab Technologies shares jumped 8% on news of new orders. Shares of Borosil Renewables rose 8.43% after reports of imposition of countervailing duty (CVD) on tempered glass, while NHPC gained 4.7% amid reports of offer for sale (OFS).
Meanwhile, the list of biggest losers included Elecon Services, Schneider Electric, JM Financial and PB Fintech. On the contrary, Ola Electric, KPR Mills, RR Kabel and Wockhardt grabbed investors’ attention with gains of 5% to 10%. Overall, despite weakness in IT stocks, strength in banking stocks helped the market recover from its intraday lows.
**Recovery seen during intraday trading**
On Wednesday, the market made a significant recovery after initial selling pressure. The Nifty Bank index jumped over 700 points from its intraday low to 53,726, and was trading firmly in the green. Renewed buying interest in banking stocks supported the broader market. Similarly, the Nifty 50 index closed around 23,343.50, recovering nearly 190 points from its intraday low of 23,151.50.
Sensex was also trading near 74,106, making a strong comeback from its intraday low of 73,492. IFCI saw a sharp rise of 12%. This market recovery shows that investors are actively looking for buying opportunities at lower levels, with banking stocks particularly showing strong interest.
**Why did IT stocks fall?**
The main reason for the fall in IT stocks today is profit-booking after the sharp rally seen on Tuesday. Last day, Indian IT stocks witnessed strong buying, led by strong cues from US technology stocks. However, investors began taking advantage of those gains on Wednesday.
Additionally, persistent selling pressure from foreign institutional investors (FIIs) further added to the bearish pressure on the sector. On Tuesday alone, FIIs sold shares worth more than ₹8,362 crore in the Indian market. Since foreign investors have a large stake in the IT sector, their selling had the most direct impact on this segment. **How did the market open?**
As soon as the market opened, caution was clearly visible among investors. Sensex opened at 74,507, down from its previous close of 74,649; Whereas Nifty opened at 23,415, which was below 23,483. Bank Nifty also opened at 53,541, which was above its previous closing price of 53,714. Talking about sectors, IT stocks showed maximum pressure; The Nifty IT index opened nearly 550 points lower, and stocks like TCS, Infosys, HCL Tech and Tech Mahindra witnessed losses in early trade.
In contrast, metal stocks saw buying, and the Nifty Metal index opened with gains. Stocks like Adani Ports, Bharti Airtel and Tata Steel were trading in the green in the early sessions, while majors like Reliance, HDFC Bank, ICICI Bank, Bajaj Finance and Kotak Bank showed signs of pressure. Overall, the market opened with caution and a weak bias due to global cues and rising US-Iran tensions.