Sensex gains over 100 pts, Nifty tops 26,200 on US economic growth optimism

Indian stocks traded modestly higher on Wednesday, with the Sensex and Nifty steadying after a flat close in the previous session, as stronger-than-expected U.S. economic growth data buoyed risk appetite. The optimism, however, was tempered by continued foreign fund outflows and thin year-end trading volumes.

The Sensex rose 100 points, or 0.07%, to 85,663.35, while the Nifty 50 added 46 points, or 0.18%, to trade above 26,200 mark.

On the 30-stock Sensex, NTPC, Trent, Bajaj Finance, Adani Ports and Axis Bank were among the top gainers, advancing between 0.6% and 1% in early trade.


Broader markets were marginally firmer, with both the mid-cap and small-cap indices rising 0.1% each.

Among individual stocks, Ajanta Pharma climbed nearly 4% after announcing a semaglutide-related deal with Biocon, while Vikran Engineering jumped 13% following the award of an engineering, procurement and construction order valued at Rs 2,035 crore.

Expert views
As 2025 draws to a close the market appears to be moving to a consolidation phase with an upward bias, said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, adding that the strong domestic macros and the supportive earnings growth expectations in Q3 and Q4 of FY26 and for FY27 will provide the fundamental support to the market.

"The sustained domestic inflows and consistent DII buying will impart resilience to the market. However, since FIIs may sell the rallies, a sharp breakout is unlikely. Also, the revival of the AI trade in U.S. might impact sentiments in favour of a ‘non-AI trade’ in markets like India," said Vijayakumar.

The RBI decision to do an additional OMO to the tune of Rs 2 lakh crores will significantly enhance liquidity and bring down yields, said Vijayakumar, adding that "this is positive for credit growth and banking stocks. This can be a shot in the arm for banking stocks which are fairly valued."

FII/DII Tracker
On the institutional front, Foreign Institutional Investors (FIIs) sold equities nearly Rs 1,795 crore on December 23, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 3,812 crore.

Global Markets
Asian markets rose Wednesday, on track to close out a strong year driven by artificial-intelligence optimism, while gold and silver pushed to fresh records as investors wrapped up 2025.

Wall Street provided the lead overnight, with the S&P 500 ending at a record as a long-awaited Santa Claus rally took hold. U.S. data showing much stronger-than-expected third-quarter growth lifted risk appetite, even as bond prices came under pressure.

Precious metals remained the standout performers in early Asian trading. Spot gold climbed 0.8% to a record $4,524 an ounce, taking its gain for the year to 72%. Silver rose 1.2% to an all-time high of $72.27 an ounce and is on track for an almost 150% annual jump, its best performance on record.

Asian equities were modestly higher. MSCI’s Asia-Pacific index excluding Japan gained 0.3% and is up 26% for the year, its strongest showing since 2017. Japan’s Nikkei added 0.4% and is also up 26% in 2025, while South Korea led the region with a 72% surge.

Futures for the EURO STOXX 50, Nasdaq and S&P 500 were little changed in thin year-end trading.

Crude impact
Oil prices edged higher Wednesday, extending the previous session’s gains as strong U.S. economic data buoyed demand expectations and investors weighed the risk of supply disruptions from Venezuela and Russia.

Brent crude futures rose 4 cents, or 0.06%, to $62.42 a barrel by 0117 GMT. U.S. West Texas Intermediate added 3 cents, or 0.05%, to $58.41 a barrel.

Rupee vs Dollar
The Indian rupee opened at 89.56 to the U.S. dollar on Wednesday, up 0.1% from its previous close, supported by a weaker greenback and improving global risk sentiment. The currency found early backing as the dollar slipped to its lowest level in more than two months, while market focus shifted to forward premiums following the Reserve Bank of India’s announcement of a $10 billion dollar-rupee swap.

The dollar index fell to 97.75 in Asian trading, marking a two-month low, even as U.S. data showed the economy grew faster than expected in the third quarter.

(with inputs from agencies)