The headline equity benchmarks closed the session with solid gains, marking their third consecutive session in the green. After a sluggish, range-bound morning, the indices sprang to life in the second half, fueled by a surge in banking stocks.

The Nifty closed comfortably above the 23,400 mark, while the Sensex surged past 77,000'cheered on by reports that China is warming up to trade talks with the US. That glimmer of diplomatic hope lit a fire under investor sentiment.

Back home, a trifecta of positive vibes kept the bulls running: expectations of a normal monsoon, cooling retail inflation, and, importantly, no nasty surprises from global markets. The financial and banking sectors did the heavy lifting, while rotational buying across sectoral giants added fuel to the rally.

The S&P BSE Sensex advanced 309.40 points or 0.40% to 77,044.29. The Nifty 50 index added 108.65 points or 0.47% to 23,437.20. In three consecutive sessions, the Sensex and Nifty have risen by 4.33% and 4.63%, respectively.

Axis Bank (up 4.26%), Trent (up 3.28%) and HDFC Bank (up 0.70%) boosted the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index advanced 0.62% and the S&P BSE Small-Cap index rallied 0.91%.

The market breadth was strong. On the BSE, 2,636 shares rose and 1,309 shares fell. A total of 133 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 1.61% to 15.87.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.17% to 6.506, compared with the previous close of 6.517.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.6775, compared with its close of 85.8050 during the previous trading session.

MCX Gold futures for the 5 June 2025 settlement rose 1.67% to Rs 95,015.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.64% to 99.52.

The United States 10-year bond yield gained 0.35% to 4.338.

In the commodities market, Brent crude for June 2025 settlement rose 68 cents or 1.05% to $65.35 a barrel.

Global Markets:

European markets traded lower on Wednesday as uncertainty over the direction of U.S. trade tariffs continues to dent sentiment.

Eurozone inflation fell to 2.2% in March 2025, according to the latest data from Eurostat on Wednesday, down from 2.3% in February 2025.

U.K. inflation data for March came in at 2.6%, according to figures published by the Office for National Statistics on Wednesday.

Most Asian stocks ended lower on Wednesday after Wall Street declined overnight as investors assessed quarterly earnings, while tariff worries continued to weigh on investor sentiment.

In a surprise move, China on Wednesday appointed its envoy to the World Trade Organization as its new trade negotiator, replacing long-time trade tsar Wang Shouwen'an important shake-up amid the ongoing tariff war with the U.S. However, Beijing remains firm on preconditions for resuming trade talks: it demands a halt to anti-China rhetoric from U.S. officials, policy consistency, resolution of concerns around sanctions and Taiwan, and a U.S. negotiator with direct backing from President Trump to finalize any agreement. These developments unfold as rising tensions and tit-for-tat tariffs threaten global trade and financial market stability.

China's economy expanded by 5.4% year-on-year in the first quarter, surpassing expectations. March retail sales rose 5.9%, while industrial production grew by 7.7% compared to the same period last year. Fixed asset investment increased by 4.2% in the January'March period. The urban unemployment rate fell to 5.2% in March, easing from 5.4% in February.

In the United States, the three major stock indexes closed lower on Tuesday. The Dow Jones Industrial Average declined 0.38%, the S&P 500 fell 0.17%, and the Nasdaq Composite edged down 0.05%. The losses came after consecutive sessions of gains, amid fading optimism over temporary relief from tariffs and uncertainty surrounding future trade policy under President Donald Trump.

NVIDIA Corporation slid 6% in aftermarket trade after the artificial intelligence major said the government had further restricted exports of its H20 chips to China.

Anticipation of more first-quarter earnings, as well as more cues on the U.S. economy, also kept risk appetite in check.

Stocks in Spotlight:

Wipro rose 1.39% after the IT major's consolidated net profit grew 6.43% to Rs 3,569.6 crore in Q4 FY25 as against Rs 3,353.8 crore in Q3 FY25. Revenue from operations increased marginally to Rs 22,504.2 crore in Q4 FY25 as against Rs 22,318.8 crore in Q3 FY25. On a year-on-year (YoY) basis, the IT firm's net profit grew 25.92%, while revenue rose 1.33% in Q4 FY25.

For the quarter ending 31 March 2025, Wipro expect revenue from our IT Services business segment to be in the range of $2,505 million to $2,557 million. This translates to sequential guidance of -3.5% to -1.5% in constant currency terms.

Swaraj Engines jumped 3.90% after the company's net profit surged 29.10% to Rs 45.42 crore in Q4 FY25 as against Rs 35.18 crore in Q4 FY24. Revenue from operations climbed 29.40% to Rs 454.16 crore in the quarter ended 31 March 2025.

Indusind Bank surged 7.12% after an external audit allayed investor fears regarding a significant discrepancy in the bank's derivative portfolio. The rally comes after a global audit firm completed an independent review of IndusInd's books, quantifying the discrepancy at Rs 1,979 crore as of 30 June 2024. Crucially, the post-tax impact on the bank's net worth is pegged at 2.27% as of December 2024'marginally better than the bank's own internal estimate of 2.35% disclosed last month.

Indian Renewable Energy Development Agency (IREDA) jumped 5.57% after the company's consolidated net profit jumped 48.66% to Rs 501.55 crore on a 36.93% increase in revenue from operations to Rs 1,905.06 crore in Q4 FY25 over Q4 FY24.

Mahanagar Gas (MGL) fell 4.79% after disclosing a significant cut in its allocation of APM (Administered Price Mechanism) natural gas. Its its allocation of APM natural gas has been reduced by approximately 18% from 16 April 2025, compared to the previous fortnight's allocation. The development has raised concerns over the company's near-term profitability.

Indraprastha Gas Ltd (IGL) slipped 1.34% after the company disclosed a reduction in its domestic gas allocation, a move that is expected to impact its profitability. Its allocation of domestic natural gas has been reduced by approximately 20%, effective 16 April 2025.

ICICI Lombard General Insurance Company declined 0.13%. The company's net profit slipped 1.90% to Rs 509.59 crore in Q4 FY25 as against Rs 519.5 crore in Q4 FY24. However, total income jumped 13.27% to Rs 5,851.17 crore in Q4 FY25 as against Rs 5,165.35 crore in the corresponding quarter last year.

ICICI Prudential Life Insurance Company rallied 3.15% after the reported 122.31% surge in standalone net profit to Rs 386.29 crore in Q4 FY25 as against Rs 173.76 crore posted in Q4 FY24. However, total income tumbled 30.79% YoY to Rs 15,637.51 crore in the quarter ended 31 March 2025.

Bajaj Electricals surged 7.21% after the company signed an exclusive agreement with Slovakian firm SEAK s.r.o. to manufacture and supply advanced lighting control products for tunnel infrastructure in India.

Dabur India added 1.4% after the company announced that its step-down wholly owned subsidiary, Dabur International FZE, will incorporate a new entity in the United Kingdom.

Prozone Realty hit a lower circuit of 2%. The company announced that its board has approved the acquisition of 100% equity shares of Probliss Realty.

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