Sectoral Snapshot: Metals Lead Rebound as IT and Auto Cap Upside

Markets rebounded on Wednesday, ending a four-session losing streak, with sectoral rotation driving the recovery as metal, oil-linked and select domestic themes outperformed, even as IT, auto and bank stocks weighed on gains.

Benchmark indices closed modestly higher, with the Nifty 50 rising 0.14% to 23,412.60 and the Sensex gaining 0.07% to 74,608.98. Broader markets outperformed, with mid- and small-cap indices posting stronger gains.

Market breadth remained positive and 10 out of 16 major sectors clocked gains.

Metal stocks led the session, with the Nifty Metal index surging more than 3%, as stronger international metal prices and steady local demand boosted stocks. Steel Authority of India Limited or SAIL led the surge on the index climbing over 14 percent, the biggest single day jump in six years. It also topped the list of gainers on BSE Midcap.

Hindustan Zinc, the largest silver producer in the country, also rose nearly four percent following a hike in import duties on precious metals.
Other metal stocks also marched in lockstep including Vedanta, Hindustan Zinc, Hindalco, Nalco, and JSW Steel.

Oil & gas stocks also ended higher, aided by selective buying, as the following rose: ONGC (1%), Oil India (nearly 3%), BPCL (over 3%) and Indian Oil Corp (over 3%). To be sure, shares of upstream oil companies ONGC and Oil India Ltd had risen yesterday as well in the wake of the government reducing royalty rates on crude oil and natural gas output across various categories of fields. The policy move was aimed at boosting domestic exploration and output.
Crude oil continues to be a dominant macro factor for Indian markets, with geopolitical tensions keeping prices firm and influencing sentiment around inflation and external balances.

IT stocks continued their slide from yesterday sparked by a revival of fears around AI disrupting their business models. Today their index lost around one percent versus nearly four percent yesterday. Both Infosys and TCS fell over one percent.
Auto index declined nearly one percent as a call to austerity and elevated oil prices dampened sentiment. M&M and TVS Motors both declined over one percent with the latter reacting to a profit miss due to higher costs.

Policy developments added to sectoral moves. After the government raised import tariffs on gold and silver to 15% from 6%, gold and silver ETFs rallied sharply, benefiting from expectations of stronger flows into domestic investment instruments. The move was aimed at easing pressure on foreign exchange reserves. The risers included Nippon India Gold ETF, Tata Gold ETF, HDFC Gold ETF, ICICI Prudential Gold ETF, Tata Silver ETF, Nippon India Silver ETF, and HDFC Silver ETF.

The rebound came after markets had fallen for four consecutive sessions amid rising crude prices, geopolitical uncertainty, and sustained foreign outflows.
Analysts noted that while the recovery is encouraging, elevated oil prices and global risk factors may continue to cap gains in the near term.
Overall, Wednesday’s trade reflected clear sectoral rotation — with metals, select energy names and midcaps leading — while IT and autos lagged. The tone suggests cautious optimism, though macro triggers such as crude trends, currency movement, and foreign flows will remain key drivers in the sessions ahead.

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