Equity markets staged a strong recovery in midday trading on Wednesday, reversing early losses as buying emerged in auto, infrastructure, and healthcare sectors. The benchmark BSE Sensex traded at 78,576.92, up 437.91 points or 0.56 per cent from its previous close, while the broader NSE Nifty rose 117.30 points or 0.5 per cent to 23,762.10 as of 12.31 PM.

The market breadth remained positive with 2,566 stocks advancing against 1,238 declines on the BSE, while 160 stocks remained unchanged. The session saw 128 stocks hitting their 52-week highs, compared to 34 touching their 52-week lows.

Mahindra & Mahindra and Adani Enterprises emerged as the top gainers on the Nifty, both rising 1.95 per cent. Asian Paints advanced 1.75 per cent, followed by Larsen & Toubro and Apollo Hospitals, which gained 1.54 per cent and 1.51 per cent respectively. On the downside, Dr. Reddy’s Laboratories led the losses with a 1.85 per cent decline, followed by Hindalco Industries dropping 1.81 per cent and Bajaj Auto falling 1.62 per cent.

The banking sector showed strength with the Nifty Bank index rising 0.51 per cent to 51,120.10, while the financial services index gained 0.56 per cent to reach 23,644.70. However, the Nifty Midcap Select index traded lower by 0.26 per cent at 12,873.80.

Market participation remained broad-based with 3,964 stocks being traded on the BSE. Circuit filters were triggered for 476 stocks, with 262 hitting the upper circuit and 214 touching the lower circuit limits.

The market recovery came despite early concerns about foreign institutional investor (FII) selling and global headwinds that had initially pushed the indices lower at opening. Technical indicators had earlier suggested downside risks if key support levels were breached, but the market has shown resilience in midday trading.

The Nifty Next 50 index also traded higher, gaining 0.17 per cent to reach 68,105.85, indicating positive sentiment extending beyond the benchmark indices.