After opening the day higher, Indian benchmark indices gained as the session progressed and ended the day higher.

Benchmark Indian equity indices Sensex and Nifty 50 staged a strong recovery and settled higher by over 1% each on Wednesday.

At the closing bell, the BSE Sensex closed Higher by 740 points (Up 1%).

Meanwhile, the NSE Nifty closed 254 points Higher (Up 1.2%).

Adani ports, Tata steel, Power Grid Corp among the top gainers today

IndusInd Bank, HDFC Bank, Bajaj Finance, on the hand, were among the top losers today.

The GIFT Nifty was trading at  22,43,0, higher by 284 points at the time of writing.

The BSE MidCap index ended 2.7% Higher, and the BSE SmallCap index ended 2.8% Higher.

Sectoral indices were trading on a positive note, with stocks in the IT sector and metal sector witnessing buying.

The rupee is trading at Rs 86.9 against the US$.

Gold prices for the latest contract on MCX are trading 0.03% Lower at Rs 86,000 per 10 grams.

Meanwhile, silver prices were trading 1.2% Higher at Rs 95,850 per 1 kg.

Here are the four key factors driving the market's momentum:

#1 US signals tariff relief

US Commerce Secretary Howard Lutnick hinted that the Trump administration may ease tariffs on Mexican and Canadian goods, sparking a market surge. The potential relaxation of tariffs would involve adjustments made in a measured manner. This development has boosted investor sentiment, anticipating reduced trade tensions. The move may signal a shift in the US trade policy, offering relief to markets

#2 Asian market strength:

Japan's Nikkei index also traded in the green, further enhancing investor sentiment. The upbeat performance in Asian markets helped create a favourable environment for the domestic market, contributing to the rally.

#3 Heavy buying in broader markets

The Nifty Midcap 100 and Smallcap 100 indices rebounded, rising nearly 2% from recent declines. Many stocks had reached attractive valuations after the sharp correction. Oversold conditions presented buying opportunities, setting the stage for a potential short-term rebound. However, uncertainty over global trade policies may keep investors cautious.

#4 Value buying in blue-chip stocks

Large-cap stocks like Tata Steel, Adani Ports, and TCS saw strong buying interest, rising to 4%. High-quality stocks had become relatively cheap after the recent correction. Indian markets contained losses better than Asian peers. Small-cap stocks saw a sharp recovery, while mid-caps posted moderate gains.
 

Mahindra Logistics rally fuelled by 5% spike

In the news from Logistics sector, Mahindra Logistics' stock price surged 5% on Wednesday's trading session on the BSE, reaching an intraday peak of Rs 254.1 per share. This significant gain was driven by the company's approval of an investment in the equity shares of its subsidiary, MLL Express Services Private Limited, through a rights issue.

In comparison, the BSE Sensex was up 1.2% at 73,861.3. The company's market capitalization stood at Rs 18.2 billion (bn). Notably, the stock's 52-week high was recorded at Rs 554.1 per share, while its 52-week low was at Rs 238.5 per share.

As part of transaction, Mahindra Logistics will acquire 350 million equity shares of MLL Express Services, with a face value of Rs 10 each. The acquisition is valued at Rs 3.5 bn, with the full issue price payable in cash on application.

MLL Express Services has a rich history, dating back to its incorporation on December 4, 2006. Since its inception, the company has been a key player in the logistics industry.

In a significant development, Mahindra Logistics acquired 100% of the paid-up share capital of MLL Express Services from its holding company, Mahindra & Mahindra Limited, on May 17, 2022. This strategic acquisition marked a significant milestone in the company's growth journey.

This development has enabled Mahindra Logistics to strengthen its foothold in the logistics industry, leveraging MLL Express Services' expertise and resources to drive growth and expansion.

SpiceJet shares soar 6% on bulk deal

Moving on to the news from Air transport service sector, SpiceJet's stock price experienced a significant surge on Wednesday, rising by 6.4% on the BSE. The airline's shares reached an intraday high of Rs 48.9 per share, driven by a substantial stake increase by Plutus Wealth Management LLP.

In a notable transaction, Plutus Wealth Management LLP acquired 9 million shares of SpiceJet on the BSE, bolstering its stake in the airline.

The company's market capitalization stood at a substantial Rs 62.4 bn. Notably, SpiceJet's stock has fluctuated over the past year, with a 52-week high of Rs 79.9 per share and a 52-week low of Rs 39.9 per share.

Notably, Plutus Wealth Management LLP has been consistently acquiring shares of SpiceJet over the past few months. In October 2024, the company bought 7.5 million shares, followed by an additional 8.5 million shares in September 2024.As of December 2024, Plutus Wealth held a 1.3% stake in SpiceJet, as per the shareholding pattern disclosed on the BSE.

The stake increase by Plutus Wealth Management LLP demonstrates confidence in SpiceJet's growth potential, particularly in the wake of the airline's efforts to expand its operations and enhance its services. As the aviation sector continues to recover from the pandemic-induced downturn, SpiceJet is well-positioned to capitalize on emerging opportunities and drive growth.

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