Stock market rebounds after eight-day slide, led by banks and auto stocks

The stock market snapped an eight-day losing streak on Wednesday, with key indices closing near the day’s highs, supported by gains in banking and auto stocks, as well as strong corporate earnings and regulatory developments.

The benchmark S&P BSE Sensex jumped 716 points, or 0.9%, to close at 80,983, while the Nifty 50 rose 225 points, or 0.9%, to 24,836, buoyed by a broad-based rally across financials, autos, and select midcap stocks.

The Nifty Bank index surged 712 points, or 1.3%, to 55,348, after the Reserve Bank of India proposed a series of banking regulations aimed at enhancing credit flow and improving competitiveness. The NSE Midcap index gained 500 points to 57,029, reflecting a strong recovery in broader market segments.

Auto stocks led the gains, with Tata Motors climbing 10% following strong domestic and international sales data that exceeded market expectations. Financial services stocks also advanced, as Shriram Finance surged 5% after management denied reports of a stake sale, while Muthoot Finance and Manappuram Finance each rose around 2% as gold prices hit record highs.

Infrastructure and transport-related names saw buying interest, with Adani Enterprises gaining over 3% after the company announced plans to acquire Yashodhan Highways and KN Highways Development. RITES rose more than 2% following a memorandum of understanding with Etihad Rail to boost collaboration. Atalantaa Industries hit the upper circuit after securing a major contract from IRCON, reinforcing investor sentiment in the construction and engineering sector.

Pharmaceuticals also contributed to the rally, with Sun Pharma climbing nearly 3% following the Pfizer-Trump deal, and Lupin rising close to 4% after receiving US FDA approval for a key drug. Sun TV surged 16% after a positive brokerage note in relation to its RCB deal, reflecting renewed investor confidence in media stocks. HUDCO jumped 4% on the back of strong Q2 loan disbursement growth, highlighting resilience in housing finance.

Market breadth favoured advances, with the NSE advance-decline ratio at 5:2, underscoring a broad-based recovery across sectors after the prolonged correction.