Nifty rises above 25,300, closing at three-month high

The stock market rose for a second straight session on Wednesday, with the benchmark Nifty 50 closing at its highest level in more than three months, led by gains in financial and public sector stocks, while investors awaited the U.S. Federal Reserve’s policy decision.

The NSE Nifty 50 ended 0.36% higher at 25,330.10, its strongest close since June 7, while the S&P BSE Sensex gained 313 points, or 0.38%, to 82,694.

Financial stocks extended their rally for a second day, with Kotak Mahindra Bank and State Bank of India among the top gainers on the Nifty. The Nifty PSU index rose 1% and the PSU Bank index climbed 3% as state-run lenders advanced.

The Nifty Bank index added 0.63% to 55,493, while the Nifty Midcap 100 edged up 0.08% to 58,849. Market breadth remained positive, with an advance-decline ratio of 4:3.

Defence stocks continued their uptrend, with Bharat Electronics Ltd

. (BEL) rising over 2%, while automakers Maruti Suzuki and Mahindra & Mahindra gained, lifting the Nifty Auto index. Reliance Industries advanced 1%, closing above key technical levels.

Midcap IT shares gained ahead of the Fed decision, with KPIT Technologies leading the pack. Among laggards, ITC and insurance names slipped, while Bajaj Finserv was the top Nifty loser.

In the broader market, Multi Commodity Exchange of India Ltd (MCX) surged 4% after SEBI said it was considering allowing banks and pension funds to participate in the commodities market.

Vedanta Ltd. fell 1% after the government flagged risks in the company’s demerger plans, though the miner said authorities were not opposed to the restructuring.

Dreamfolks Services Ltd. slid 5% after announcing it will discontinue its airport lounge business.

Meanwhile, Urban Company Ltd. made a stellar stock market debut, ending 62% higher against its issue price. Shringar House shares closed 12% higher on their first day of trading.