Indian benchmark indices closed higher for the second straight session, driven by a powerful rally in defense equities. The Sensex added 487.20 points, or 0.60 percent, finishing at 82,344.68. Meanwhile, Nifty posted gains of 167.35 points, or 0.66 percent, to reach 25,342.75, as bullish sentiment prevailed.
Defense emerged as the sector leader, with Nifty Defence Index soaring 6.95 percent. Key gainers Data Patterns, BEML, Solar Industries, and BEL saw heavy inflows, reflecting strong fundamentals and policy tailwinds.
Sectoral performance was largely upbeat: PSE index up 4.61%, Oil & Gas 3.40%, Metals 2.34%, Commodities 2.26%, Media 2.13%, PSU Banks 1.68%, Realty 1.57%. Strength extended to broader markets, with Nifty Smallcap 100 rising 2.26% to 16,790.95 and Nifty Midcap 100 up 1.66% to 58,438.60.
Weak spots included FMCG (-0.71%), Pharma (-0.22%), and Healthcare (-0.20%), where caution prevailed.
The momentum traces back to the India-EU Free Trade Agreement announced Tuesday, igniting interest in metals, financials, and oil & gas. Selling was observed in select oil & gas and FMCG names. International markets await US Fed moves, but rate hikes seem off the table.
Upcoming Fed remarks on interest rates will dictate near-term direction. The day started strong; at 9:28 AM, Sensex was ahead by 483.28 points (0.59%) at 82,340.76, and Nifty up 153.45 points (0.61%) at 25,328.85.