Sensex, Nifty Rebound as IT Stocks Lead Market Recovery on Hopes of Early India-US Trade Breakthrough

Indian equity markets opened higher on Wednesday, reversing the previous day’s losses as information technology stocks sparked early gains across benchmark indices. The rebound came amid renewed optimism surrounding an anticipated India-US trade agreement, even as global markets continued to grapple with a broad sell-off in artificial intelligence shares.

The Sensex climbed to 84,700 in early trading, while the Nifty moved to 25,900. IT and banking counters led the uptrend, offsetting weakness in finance and energy stocks. Market participants said the recovery was driven largely by expectations that the first phase of a long-pending trade pact between New Delhi and Washington could advance sooner than previously projected, boosted by progress on the countries’ recent LPG supply arrangement.

Despite the upbeat start, sentiment remained cautious. Analysts noted that investors were closely watching international market cues, particularly the ongoing correction in AI-linked equities. The global tech pullback has pressured valuations across sectors heavily exposed to digital services and automation technologies, sectors deeply intertwined with India’s export-driven IT industry.

Across Asia, the trading pattern reflected that cautious mood. Japan’s Nikkei inched up 0.24% to 48,818, but the Kospi in South Korea slipped 0.50% to 3,933. Hong Kong’s Hang Seng also dipped 0.47% to 25,808, underscoring regional concerns over the tech rout and geopolitical uncertainties.

Overnight trends from the United States offered little support. On November 18, the Dow Jones Industrial Average closed 1.07% lower at 46,091, while the Nasdaq Composite and the S&P 500 registered declines of 1.21% and 0.83%, respectively. The downturn in American indices contributed to volatility in global risk appetite.

Foreign portfolio flows continued to reflect the cautious tone. Data from November 18 showed Foreign Institutional Investors selling equities worth Rs.1,234 crore, extending their monthly outflow to Rs.13,939 crore. Domestic Institutional Investors, however, provided firm buying support, purchasing shares worth Rs.2,395 crore on Tuesday and building their November total to nearly Rs.49,000 crore. Brokers said DII inflows played a key role in stabilizing the market’s early Wednesday movement.

In primary market action, the IPO of Excelsoft Technology opened for subscription, drawing attention from retail and institutional investors. The Rs.500-crore issue comprises a fresh offering of Rs.180 crore and an Offer for Sale of Rs.320 crore, with a price band of Rs.114–120 per share. The subscription window will remain open until November 21.

Wednesday’s rebound follows a subdued session on Tuesday, when the Sensex fell 277 points to 84,673 and the Nifty closed 103 points lower at 25,910. Analysts said the market’s trajectory through the week will depend on global tech market stability, domestic fund strength, and progress in trade dialogue with the United States.

With key macro indicators due later this month and global cues remaining mixed, traders expect volatility to persist. However, optimism around the India-US trade framework and resilient domestic institutional buying could provide a supportive base for benchmark indices in the near term.