Indian benchmark indices staged a sharp recovery on Wednesday, December 31, as buying interest returned to the equity markets after several sessions of decline. The rally helped end a five-day losing streak, driven primarily by strong gains in metal stocks following a policy announcement by the central government.
The Sensex surged 654.73 points, or 0.82 percent, to trade at 85,329.81 by around 1:35 pm. The Nifty also advanced by 212.75 points, rising 0.82 percent to reach 26,151.60. The recovery reflected renewed investor confidence, particularly in sectors expected to benefit from recent policy measures.
A key trigger for the rally was the government’s decision to impose a safeguard duty on certain steel imports. This move is aimed at protecting domestic steel producers from a surge in low-priced overseas supplies. As a result, shares of major metal companies witnessed strong buying interest, contributing significantly to the overall market gains.
Market breadth was firmly positive during the session. Approximately 2,455 stocks were trading higher on the exchanges, while around 1,009 shares declined and 170 remained unchanged. This broad-based participation indicated a healthy recovery across sectors, rather than a rally limited to a few heavyweights.
Among the top gainers on the Nifty50 index were metal majors such as JSW Steel and Tata Steel, which rose by up to 5 percent. Titan Company also featured among the leading gainers, supported by buying interest in consumer and lifestyle stocks. The metal sector emerged as the best-performing segment of the day, reflecting optimism over improved pricing power and demand prospects.
On the downside, select heavyweight stocks faced mild pressure. Shares of Tata Consultancy Services and Bajaj Finance declined by up to 1 percent, slightly limiting the overall upside in the indices. The information technology and financial sectors showed mixed trends, with investors remaining selective amid global uncertainties.
Market participants noted that the rebound was aided by bargain hunting after recent declines, as well as supportive domestic policy cues. Investors are also closely monitoring global developments, including movements in commodity prices and cues from international markets, which may influence near-term trends.
Analysts believe that while the day’s rally has improved sentiment, sustained momentum will depend on earnings visibility, global market stability, and further policy clarity. Traders are advised to remain cautious and focus on fundamentally strong stocks, especially in sectors benefiting from structural and policy-driven support.
Overall, the session marked a positive turnaround for Indian markets, with metals leading the charge and broader participation lending strength to the recovery.
