Mumbai— Indian equity markets extended their rally for a second consecutive session on Wednesday, driven by strong gains in media and technology stocks, a drop in global crude oil prices, and easing geopolitical tensions between Iran and Israel following a ceasefire agreement.
The benchmark BSE Sensex surged 700.4 points, or 0.85%, to close at 82,755.51. Meanwhile, the NSE Nifty gained 200.40 points, or 0.8%, ending the day at 25,244.75.
Top performers on the Sensex included Titan Company, Mahindra & Mahindra, Infosys, Power Grid, TCS, and Bharti Airtel — all logging gains of up to 3.6%. On the downside, BEL, Kotak Mahindra Bank, and Axis Bank were among the key laggards, falling as much as 3%.
Broader market indices also saw positive movement. The Nifty MidCap index rose 0.44%, while the Nifty SmallCap index jumped 1.5%, indicating broader participation in the market recovery.
Among sectoral indices, Nifty Media led the charge with a 1.99% gain, followed by Nifty IT (up 1.64%) and Nifty Consumer Durables (up 1.43%).
Investor sentiment improved on the back of cooling oil prices and a reduction in geopolitical risk, which encouraged greater risk-taking in the market. However, analysts caution that foreign investor selling remains a concern.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the market’s upward momentum to easing tensions in the Middle East and softer crude prices. “Indian equity markets have staged a recovery, supported by easing geopolitical tensions in the Middle East and a moderation in crude oil prices,” Nair said.
He added that domestic factors such as a favorable monsoon forecast and declining inflation are further supporting market optimism.
Meanwhile, the Indian rupee traded flat at around 86.10, following a sharp rally of over 0.75% in the previous session. It hovered within a narrow range of 86.00 to 86.15.
“Market participants are now looking ahead to key economic data from the U.S., including the PCE Price Index and GDP numbers expected later this week,” said Jateen Trivedi, VP Research Analyst at LKP Securities. He noted that the rupee is likely to trade in the 85.70–86.25 range in the near term. (Source: IANS)
