Sensex, Nifty begin FY27 higher, snap two-day losing streak

MUMBAI — Indian stock markets ended the first trading session of fiscal year 2027 on a positive note Wednesday, snapping a two-day losing streak despite giving up a significant portion of early gains as optimism over easing U.S.-Iran tensions faded.

Benchmark indices Sensex and Nifty both closed higher after a volatile session.

The Nifty rose 348 points, or 1.56 percent, to settle at 22,679.40, while the Sensex gained 1,186.77 points, or 1.65 percent, to close at 73,134.34.

Markets opened strongly on hopes of a potential de-escalation in the U.S.-Iran conflict, but sentiment weakened as the session progressed, leading to a pullback from intraday highs.

Analysts said that on the downside, failure to hold above the 22,500 level on the Nifty could trigger renewed selling pressure, potentially pushing the index toward 22,300, with a stronger support zone near 21,700.

“On the upside, the 23,000 mark remains a key psychological resistance and a decisive supply zone,” an analyst said.

Among the top gainers on the Nifty were Trent Ltd., InterGlobe Aviation, and Adani Ports and Special Economic Zone, which helped support the broader market.

Broader markets outperformed the benchmarks, with the Nifty MidCap index rising 2.24 percent and the Nifty SmallCap index jumping 3.24 percent.

Sectorally, the Nifty PSU Bank index led the gains, reflecting strong buying in public sector banking stocks. The Nifty Chemical and Nifty Media indices also saw notable buying interest.

However, some sectors lagged. The Nifty Healthcare and Nifty Pharma indices ended lower, partially offsetting the broader market gains.

Analysts said the market’s ability to close higher despite late-session volatility was supported by broad-based buying, particularly in mid- and small-cap stocks.

Looking ahead, market participants are expected to closely watch key U.S. economic data, including nonfarm payrolls, ADP employment figures, and the unemployment rate, which could drive volatility in the coming sessions. (Source: IANS)