Nifty Ends Higher But Liquor, Finance Stocks Drag: SEBI RA Sees Upside Continuation

Indian benchmark indices ended modestly higher on Wednesday amid strength in IT and auto stocks, though broader market weakness and sharp declines in liquor and power shares weighed on sentiment.

The Sensex ended 123 points higher to close at 82,515, while the Nifty 50 rose 37 points to finish at 25,141.

The broader markets underperformed, with the Nifty Midcap index shedding 0.4% and the Smallcap index ending nearly 0.6% lower. 

Retail investor sentiment surrounding the Nifty 50 was 'bearish.' 

On the sectoral front, IT led gains with a 0.19% rise, followed by oil & gas and auto stocks, while financial services, FMCG, and power sectors saw modest declines.

Nifty gainers included IT majors Infosys and HCLTech, along with BPCL, Oil India, M & M, and Bajaj Auto.

Shares of liquor makers fell sharply after the Maharashtra cabinet approved a steep 50% increase in excise duty on Indian Made Foreign Liquor (IMFL).

United Spirits dropped 6.6%, while Radico Khaitan slid 3.5%, as the new regulation increases excise duties from three times to 4.5 times the manufacturing cost. 

In contrast, Texmaco Rail & Engineering rose 1.3% after securing a ₹44.04 crore contract from Mumbai Railway Vikas Corporation. 

The project involves the supply, installation, testing, and commissioning of traction transformers, as well as related works.

Indian Energy Exchange (IEX) shares fell 8% ahead of a stakeholder meeting on market coupling, set to be chaired by Power Minister Manohar Lal on Wednesday. 

According to reports, the minister may outline the benefits of market coupling during the discussions.

From a technical perspective, SEBI-registered investment advisor Financial Independence noted that Nifty is trading above the 25,200 spot level with the RSI above 60 across monthly, weekly, and daily time frames, supported by a golden crossover. 

The advisor expects strong upward momentum in the coming sessions, with an initial target of 25,450. 

If the index sustains above that level, a move toward the all-time high could follow, the advisor said. 

European stocks rose on Wednesday as investors awaited U.S. inflation data and U.K. Finance Minister Rachel Reeves' plan to allocate over £2 trillion in public spending.

Meanwhile, Dow futures pointed to a higher open for Wall Street.

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