Indian benchmark indices pared early gains in Wednesday’s trade on May 14 but ended the session with solid gains, supported by strong performances in metal, real estate, and technology stocks.
The Nifty 50 ended Wednesday’s session with a gain of 0.36%, rising 88 points to close at 24,666, while the Sensex added 182 points, or 0.22%, to settle at 82,429. Despite a volatile session, broader markets outperformed the benchmarks, with the Nifty Midcap 100 climbing 1.13% and the Nifty Smallcap 100 advancing 1.36%.
While the Indian stock market continues to search for clear direction after Monday’s sharp rally — its biggest intraday jump in four years — domestic defence stocks extended their upward momentum for a third consecutive day, showing sustained strength.
Meanwhile, retail inflation in India eased in April to its lowest level in over six years, largely due to declining food prices. The cooling inflation has raised expectations of a potential rate cut by the central bank, which could further stimulate consumer demand.
Another factor boosting rate cut optimism is the Indian economy’s 6.4% growth in the December quarter — its slowest since the January-March 2022-23 period, barring one quarter. Economists now widely expect the central bank to opt for another rate cut in June.
On the other hand, data released overnight showing softer-than-expected U.S. consumer inflation also provided some relief to investors worried about the inflationary impact of U.S. tariff policies, which had severely undercut expectations of near-term Fed rate cuts.
Sectoral performance: All major indices end higher; metals steal the show with 2.5% gain
All 13 sectoral indices closed in the green on Wednesday, with Nifty Metal leading the pack, gaining 2.5% — its second-largest intraday jump this month. Metal stocks received a boost from developments in the US-China trade deal, along with reports suggesting that India may impose retaliatory tariffs on the US in response to President Donald Trump’s duties on steel and aluminum.
Other sectoral indices also saw healthy gains, with Nifty Realty, Nifty IT, Nifty Media, Nifty Oil & Gas, and Nifty Auto rising between 0.8% and 1.7%.
Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Investments Limited, said, “Market optimism is gaining momentum, driven by a sharp decline in both global and domestic risks. In this environment, the broader markets are on an upswing, supported by a strengthening recovery in local demand, as reflected in the March quarter corporate earnings.”
“This has sparked a rally in mid- and small-cap stocks, which had underperformed earlier due to premium valuations, earnings downgrades, and moderation in foreign institutional investor (FII) and retail inflows. Currently, midcaps are witnessing renewed interest, fueled by marginal upgrades in recent earnings and the potential for a stronger rebound in FY26. Contributing factors include a consistent decline in inflation, rising disposable incomes, increased government spending, and falling interest rates. Meanwhile, a pause in global trade tensions is boosting sentiment in international markets, with metals gaining traction amid easing concerns over an economic slowdown,” he further added.
Bulls to dominate the Street as long as Nifty 50 stays above 24,400, says expert
Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty remained range-bound on Wednesday after two sessions of high volatility. “The Nifty traded within a narrow range today, following two days of high volatile moves. The short-term trend remains positive, as the index continues to remain above critical moving average. After a sharp rally, this sideways movement appears to be a healthy consolidation, suggesting the market is catching its breath before the next move. As long as the index stays above the crucial support level of 24,400, the bulls are likely to maintain their grip. In the near term, the index might move towards the 24,850–25,000 range. However, a drop below 24,400 could delay this upward trajectory and lead to further consolidation.”