Indian Markets Hold Steady Ground as Metal and Banking Sectors Drive Momentum

Indian equity benchmarks maintained their bullish stance Wednesday as investors showed renewed interest in metal and public sector bank stocks. The BSE Sensex climbed 296.87 points to trade at 84,971.95, representing a 0.35% gain, while the NSE’s Nifty50 index advanced 111.05 points or 0.43% to reach 26,049.90.

Strong Performance Anchored by Key Sectors

The metal sector emerged as the session’s standout performer. Tata Steel posted a 2.5% jump, while JSW Steel surged 5%. Jindal Steel climbed 3.5%, and SAIL advanced 2.3%. This broad-based strength in steel names reflected investor optimism about the sector’s medium-term prospects.

Public sector banks remained firmly entrenched in positive territory, providing substantial support to the broader index. The State Bank of India gained 0.8%, while other PSU lenders showed more pronounced moves. PSB Bank jumped 3.75%, with Indian Bank, Maharashtra Bank, Punjab National Bank, Canada Bank, and Union Bank of India all posting 2-3% gains. Bank of India, Bank of Baroda, IOB, and Central Bank of India also registered solid upside momentum.

Mixed Signals in IT and Consumer Segments

Technology stocks presented a contrarian picture, with weakness evident among major IT names. TCS, Infosys, Tech Mahindra, and Bajaj Finserv retreated 0.5-1%. However, defensive and consumption-related stocks demonstrated resilience. Titan Industries climbed 2%, while FMCG heavyweights like Hind Unilever and Asian Paints posted modest 1-1.7% gains. Power Grid Corporation and NTPC also contributed to the upside with similar magnitudes.

Large-cap banking and industrial names including Axis Bank, Adani Ports, HCL Technologies, Reliance Industries, Kotak Bank, and ITC traded with moderate gains, suggesting a rotation toward value-oriented positions.

Company-Specific Moves

Vodafone Idea captured market attention with a sharp rally following reports that the Union Cabinet plans to review the telecom operator’s bailout proposal today. Market participants expect potential relief on interest and penalty related to AGR dues.

Bharat Forge climbed 0.7% after securing a Rs 1,661.9 crore defence contract from the Ministry of Defence for CQB Carbine supplies to the Indian Army, underlining the strength in defence manufacturing plays.

Broader Market Breadth Confirms Rally Strength

The market breadth on BSE painted an encouraging picture of the upside momentum. A total of 2,652 stocks advanced, while 1,110 declined and 205 remained largely unchanged. This composition signals broad participation in the rally across market segments.

Performance Context

Year-to-date, the Sensex has accumulated nearly 1% gains in December and posted over 8% appreciation in the past 12 months. The Nifty50 similarly added almost 1% this month, with January 2025 onwards showing approximately 10% upside since calendar year beginning.