Analysts Cite Policy Hints and RBI Measures for Recent Rally

Wednesday’s market opened with the Sensex gaining 15.98 points (0.02%) to 73,049.76, while the Nifty 50 edged down 6.20 points (0.03%) to 22,715.75.

The standout performer was the IT sector, where the Nifty IT index posted more than 1% growth, followed closely by mid‑small IT & Telecom and FMCG, each climbing about 0.38%.

Conversely, Consumer Durables fell 0.67% and healthcare‑related indices slipped 0.6%, with PSU banks also under pressure.

Experts attribute the sudden upward thrust to aggressive short‑covering on Tuesday and to remarks by Finance Minister Nirmala Sitharaman indicating a careful review of LTCG tax and Securities Transaction Tax. Such policy signals have raised expectations of future regulatory relief, boosting market sentiment.

The RBI’s recent steps to curb speculative activity in the currency market have helped the rupee appreciate roughly 1.5% over the past two sessions, reinforcing confidence among foreign investors.

Nevertheless, global factors continue to loom. The US 10‑year Treasury yield remains near 5.2% and Brent crude is trading close to $106 per barrel, both of which could cap further equity gains.

Technical analysis shows the rally reigniting hopes of a Nifty breach of the 23,200 mark, with immediate support near 22,550 and a resistance corridor between 22,787 and 22,880.