The Sensex surged 889 points, or 1.16%, to close at 77,654.60, while the Nifty50 settled 265 points, or 1.1%, higher at 24,250.20, powered by sharp gains in IT, FMCG and metal shares.
The Nifty MidCap rose 0.82% and the Nifty SmallCap climbed 1.48%.
Impact On The Stock Market
Sector-wise, the Nifty IT, Nifty Metal and Nifty FMCG indices outperformed, with IT continuing its remarkable run as the market’s new favourite. Investors were also positioning ahead of the US Federal Reserve’s interest rate decision due later in the day, which could shape the next leg for rate-sensitive sectors.
The Nifty Realty and Nifty Auto indices underperformed, sitting out the rally. Auto’s weakness makes sense with crude oil bouncing back on Wednesday morning, since higher fuel prices raise both input costs and running costs for vehicle buyers.
| Sector/Index | Performance |
| IT & BPM sector | 2.32% |
| Healthcare sector | 1.20% |
| Oil & Gas sector | 0.08% |
| Real estate sector | -0.33% |
| PSU Bank in India | 0.40% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Jio Financial | 249.48 | 5.23 |
| HUL | 2,117.80 | 4.70 |
| Infosys | 1,155.60 | 4.51 |
| Hindalco | 962.45 | 2.78 |
| Larsen | 3,931.40 | 2.59 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Adani Ports | 1,719.70 | -3.10 |
| M&M | 3,221.80 | -1.51 |
| Power Grid Corp | 282.85 | -0.86 |
| Eicher Motors | 7,779.00 | -0.73 |
| Bharat Elec | 387.55 | -0.37 |
Market aftermath: Impact on stocks
Infosys: An 11% three-day rally built on the anti-AI trade
Infosys extended its winning streak to a third straight session, rising nearly 5% to ₹1,157.40 on the NSE and taking its three-day gain to around 11%. The driver is a global capital rotation, with investors moving out of expensive AI infrastructure and semiconductor stocks and into IT services companies that can benefit from AI adoption without spending billions on data centres. In effect, Indian IT firms are being viewed as AI implementation partners rather than AI infrastructure builders.
The rebound also reflects how cheap the sector had become, with the Nifty IT index having corrected 35-40% from its previous peak before institutional buying and the unwinding of bearish positions kicked in. Analysts are urging some caution, with Ponmudi R of Enrich Money noting that momentum indicators are entering overbought territory and a phase of consolidation would build a stronger base for the next move higher. The bigger picture, according to Mayank Jain of Share.Market, is that a durable recovery still needs lower US interest rates to unlock technology spending by the sector’s North American banking clients, which puts the Fed’s decision in sharp focus.
SML Mahindra: Locked at the 20% upper limit on a ₹525 crore group restructuring
The day’s most dramatic mover was SML Mahindra, which hit its 20% upper circuit (the maximum a stock is allowed to rise in a day) at ₹4,566 after Mahindra & Mahindra’s board approved selling its truck and bus business to the subsidiary for ₹525 crore. The deal transfers assets, people, licences and liabilities in one go, consolidating the group’s entire commercial vehicle operation under a single listed entity. It follows Mahindra’s acquisition of a controlling stake in SML Isuzu in August 2025, after which the truck and bus maker was renamed SML Mahindra.
The division being transferred generated revenue of ₹2,989 crore in the last financial year, about 2% of Mahindra & Mahindra’s total income, and the market clearly likes what the combination could become through greater scale, a broader product range and operational efficiencies. The agreement is expected to be signed by August 7 and the deal closed by January 31, 2027, with Mahindra & Mahindra continuing to build the vehicles under a contract manufacturing arrangement. The parent’s shares slipped 1.4% to ₹3,226, a mild reaction that suggests investors view the move as a structural clean-up rather than a loss of value.
Cipla: A first-of-its-kind inhaler approval opens a $30-40 million door
Cipla shares rose 2.66% to ₹1,483 after the US drug regulator approved its generic version of Advair Diskus, a widely used asthma and respiratory inhaler, in all three strengths. Brokerage Nomura said the approval “builds execution credibility”, and it carries extra significance as the first dry powder inhaler approval for Cipla. The product comes from its new Fall River facility in the US, after being moved from an Indian plant that had faced regulatory scrutiny in 2023.
The commercial opportunity is real but competitive, since the branded and generic versions of the drug together generate annual sales of about $941 million and Cipla arrives as the fifth generic player. Nomura expects the company to capture a 10-15% share worth roughly $30-40 million in annualised revenue, an upside to its current estimate of $20 million from the product for FY28. For a company aiming at ambitious North America revenue targets, every credible new approval strengthens the case.
Crude oil: Brent bounces 3.5% as Saudi oil facilities come under attack
Just when crude seemed to be cooling, tensions in West Asia escalated again. Brent crude futures jumped 3.5% to $84.95 a barrel on Wednesday morning, US crude rose 3.86% to $82.32, and oil futures on India’s commodity exchange climbed 4.14% to ₹7,918, snapping a three-day slide. The trigger was a joint US-Saudi strike on Iran-aligned targets in eastern Iraq, a response to more than 30 drone attacks in 72 hours aimed at US forces and Saudi energy infrastructure. Analysts at ING said the developments “throw cold water on the idea of a swift de-escalation”, and the supply risks are stacking up: Saudi Arabia’s 400,000 barrels a day Jazan refinery has reportedly shut following Houthi attacks, tanker traffic through the Strait of Hormuz remains essentially halted, and Iran has rejected Oman’s proposal for a shared plan to manage shipping through the strait.
Conclusion
Wednesday’s 889-point surge showed a market eager to believe the worst is over, with IT leading, smallcaps outperforming and corporate action from Mahindra and Cipla adding fuel. But the crude oil rebound is the caveat to the day’s optimism: equities rallied even as Brent jumped 3.5% and Saudi infrastructure came under direct attack, and those two stories cannot both stay comfortable for long. The Fed’s rate decision later tonight is the next big signal, especially for the IT trade that has carried this recovery. Enjoy the momentum, but watch oil and the Fed before assuming the market has fully turned the corner.
