Indian equities rose on Wednesday, extending their recovery for a third consecutive session, as easing volatility in crude oil prices and bargain buying after the recent correction lifted sentiment.
The Sensex ended at 76,704, up 633 points or 0.8 per cent, while the Nifty closed at 23,778, gaining 197 points or 0.8 per cent. Over the past three sessions, the Sensex has risen 2.9 per cent, and the Nifty 2.7 per cent.
The total market capitalisation (mcap) of BSE-listed firms increased by ₹5.7 trillion to ₹439 trillion. However, despite the recent rebound, the benchmarks remain down 5.6 per cent since the onset of the Iran war, with overall mcap declining by ₹24.5 trillion during the period.
Brent crude rose 1.8 per cent to $102.5 per barrel but remained below the post-war high of $116.8. The moderation in volatility comes even as the conflict involving Iran, the US, and Israel enters its third week, with disruptions continuing in the Strait of Hormuz, a key global oil supply route. Brent prices have surged 38.7 per cent since the start of the war.
Iran continued its attacks on Israel and Arab states, vowing to avenge the death of its security chief Ali Larijani. Analysts caution that a prolonged conflict could push energy prices higher, fuelling inflation in India, which relies heavily on imports to meet its energy needs.
“Domestic markets extended their recovery, supported by opportunistic buying after the recent selloff. The rebound was broad-based, driven by a combination of short covering and value buying, with leadership from information technology (IT), realty, and auto sectors, alongside strength in mid- and small-cap stocks. Long-term value persists, but near-term upside remains constrained due to ongoing geopolitical tensions, elevated crude prices, and continued rupee depreciation,” said Vinod Nair, head of research, Geojit Investments.
Foreign portfolio investor (FPI) selling also moderated. They were net sellers to the tune of ₹2,714 crore on Wednesday while domestic institutional investors (DIIs) bought shares worth ₹3,253 crore.
Broader markets outperformed, with the Nifty Midcap 100 rising 2.02 per cent, and the Nifty Smallcap 100 gaining 1.7 per cent.
“Going ahead, the immediate resistance for Nifty is placed in the 23,900-23,950 zone. A sustained move above this could extend the pullback towards 24,100, followed by 24,300 in the short term. On the downside, the 23,600-23,550 zone is likely to act as strong support,” said Sudeep Shah, head of technical and derivatives research, SBI Securities.
Among Sensex constituents, Infosys, which rose 2.8 per cent, was the top contributor to gains, followed by Reliance Industries, up 0.9 per cent. Market breadth remained strong, with 3,169 stocks advancing against 1,130 declining.
