IT, auto and pharma shares advanced, while consumer durable, PSU bank and private bank shares declined.

At 13:30 IST, the barometer index, the S&P BSE Sensex added 300 points or 0.38% to 79,896.95. The Nifty 50 index rose 94.55 points or 0.39% to 24,261.80.

In the broader market, the S&P BSE Mid-Cap index rose 0.53% and the S&P BSE Small-Cap index shed 0.01%.

The market breadth was negative. On the BSE, 1,761 shares rose and 2,076 shares fell. A total of 171 shares were unchanged.

Politics:

Prime Minister Narendra Modi returned to New Delhi on Wednesday morning, cutting short his two-day visit to Saudi Arabia, following a devastating terror attack in Jammu and Kashmir’s Pahalgam.

At least 26 people, including two foreign nationals, were killed in what is being described as one of the deadliest attacks in the region in recent years. The strike occurred around 2:30 PM on Tuesday, when a group of heavily armed terrorists—disguised in military fatigues—opened fire on tourists gathered at Baisaran meadow, a popular scenic spot in Pahalgam.

The rare and brazen assault has sent shockwaves through the nation, with security forces launching a massive operation to track down the perpetrators.

Economy:

The International Monetary Fund (IMF) on Tuesday slashed India’s FY26 GDP growth projection to 6.2%, down from its earlier estimate of 6.5%, citing growing global trade tensions and economic uncertainty following the United States’ recent tariff imposition.

The downward revision comes as the U.S. levies a 26% tariff on imports from India, casting a shadow over India's trade outlook and prompting the IMF to temper its expectations. The FY27 growth forecast has also been dialed back to 6.3% from the earlier projection of 6.5%.

China’s growth outlook for 2025 has been cut to 4%, down from 4.6%, reflecting continued challenges in its property sector and weakening global demand. Meanwhile, the U.S. economy is projected to slow to 1.8%, a sharp decline from the 2.7% forecast in the IMF's January 2025 World Economic Outlook (WEO) update.

The HSBC Flash India Composite Output Index rose to 60.0 in April 2025 as compared to 59.5 in March 2025. The Flash India Manufacturing PMI jumped to 58.4 in April 2025 as against 58.1 in March 2025, indicated the strongest improvement in the health of the sector for one year. The HSBC Flash India Services PMI business activity index stood at 59.1 in April 2025 as against 58.5 in March 2025.

Pranjul Bhandari, Chief India Economist at HSBC, said, "New export orders accelerated sharply, likely buoyed by the 90-day pause in the implementation of tariffs. As a result, output and employment grew for both manufacturers and service providers. Cost inflation was in line with March levels, but prices charged rose a tad faster, leading to improved margins."

Gainers & Losers:

HCL Technologies (up 7.89%), Tech Mahindra (up 4.47%), Wipro (up 3.93%), Tata Motors (up 3.90%) and Infosys (up 3.76%) were the major Nifty50 gainers.

Grasim Industries (down 2.20%), Kotak Mahindra Bank (down 1.79%), Eicher Motors (down 1.75%), HDFC Bank (down 1.74%) and Axis Bank (down 1.20%) were the major Nifty50 Losers.

HCL Technologies surged 7.89%. The had reported 6.2% fall in net income to Rs 4,307 crore on a despite a 1.2% increase in revenues to Rs 30,246 crore in Q4 FY25 as compared with Q3 FY25. Meanwhile, the company's board has declared a dividend of Rs 18 per share, marking it the 89th consecutive quarter of dividend pay-out.

Stocks in Spotlight:

Mahindra & Mahindra Financial Services slipped 2.92% after the NBFC’s standalone net profit declined 9.02% to Rs 563.14 crore in Q4 FY25 as against Rs 618.99 crore reported in Q4 FY24. However, total income increased by 14.54% year on year to Rs 4245.09 crore in the quarter ended 31 March 2025.

AU Small Finance Bank (SFB) soared 7.74% after the bank reported a standalone net profit of Rs 503.69 crore in Q4 FY25, up 35.86% as against Rs 370.73 crore posted in Q4 FY24. Total income surged 49.27% to Rs 5,031.26 crore in Q4 FY25, compared with Rs 3,370.51 crore posted in Q4 FY24.

Cyient DLM rallied 3.50% after the company’s consolidated net profit surged 36.49% to Rs 31.04 crore in Q4 FY25 as compared to Rs 22.74 crore in Q4 FY24. Revenue from operations jumped 18.30% YoY to Rs 428.06 crore in the quarter ended 31 March 2025.

Maharashtra Scooters advanced 4.50% after the company reported net profit of Rs 51.63 crore in Q4 FY25, steeply higher than Rs 0.1 crore posted in Q4 FY24. Revenue from operations jumped 28.37% year on year (YoY) to Rs 6.65 crore in the quarter ended 31 March 2025.

Waaree Energies climbed 18.07% after the company reported 34.10% surge in consolidated net profit to Rs 618.91 crore in Q4 FY25 as against Rs 461.52 crore posted in Q4 FY24. Revenue from operations climbed 36.38% year on year (YoY) to Rs 4,003.93 crore in the quarter ended 31 March 2025.

Havells India declined 2.93%. The home appliance company’s standalone net profit gained 16.35% to Rs 522.26 crore on a 20.2% increase in revenue to Rs 6,532.21 crore in Q4 FY25 over Q4 FY24.

Delta Corp slipped 1.05%. The company’s consolidated net profit zoomed 127.26% to Rs 164.56 crore in Q4 FY25 as against Rs 72.41 crore posted in Q4 FY24. However, revenue from operations declined 1.20% to Rs 182.65 crore in Q4 FY25, compared with Rs 184.87 crore posted in Q4 FY24.

Global Markets:

Dow Jones futures surged 505 points on Wednesday, setting the stage for a robust Wall Street open.

European markets opened higher on Wednesday, as global market sentiment rebounds amid receding concerns over a trade war between the U.S. and China.

Most Asian markets advanced, buoyed by optimism following a strong U.S. session. The cheer stems from growing hopes that U.S.-China trade tensions might be cooling off. President Trump hinted that upcoming tariffs on Chinese exports “won’t be anywhere near as high as 145%,” though he quickly added, “they won’t be 0% either.”

In a separate comment, Trump confirmed he has “no intention” of firing Fed Chair Jerome Powell before his term ends. That assurance calmed fears about potential political meddling in central bank affairs.

Back in Japan, the manufacturing scene remains in the doldrums. The au Jibun Bank manufacturing PMI for April ticked up to 48.5 from 48.4 in March. With a sub-50 reading, it still marks the tenth straight month of contraction.

Back in the U.S., stocks rallied hard on Tuesday. Trump’s toned-down rhetoric about Powell helped ease investor anxiety. The S&P 500 spiked 2.5%, the NASDAQ surged 2.7%, and the Dow soared 2.7%, as traders hit the “buy” button across the board.

Tesla zoomed up 5.1% in after-hours trading, despite missing revenue and profit estimates for the March quarter. Elon Musk declared he’ll dial back his government engagements and shift focus squarely back to Tesla from May.