MUMBAI — Indian stocks rallied sharply Wednesday, with the Sensex surging 940.73 points and the Nifty closing above 24,300 as global sentiment improved following a steep drop in crude oil prices.
The Nifty rose 298.15 points, or 1.24 percent, to settle at 24,330.95. The Sensex gained 940.73 points, or 1.22 percent, to close at 77,958.52.
The rally gained strength in the second half of the session after reports suggested a possible diplomatic breakthrough between the United States and Iran, easing concerns about prolonged tensions in the Gulf. Lower crude oil prices also supported sentiment, particularly for India, which relies heavily on imported oil.
Market analysts said the Nifty staged a strong rebound and closed above immediate resistance near 24,300. The index has established support around 24,000, a level that aligns with its 21-day and 50-day moving averages.
Analysts also said the Nifty broke out of a symmetrical triangle pattern on the daily chart, suggesting a stronger short-term setup and potential upside toward 24,500.
On the stock front, InterGlobe Aviation, Tata Motors Passenger Vehicles and Shriram Finance were among the top performers on the Nifty.
Broader markets also advanced. The Nifty MidCap index rose 1.76 percent, while the Nifty SmallCap index gained 1.93 percent.
Banking and real estate shares led the sectoral rally, with PSU banks, private banks, broader banking stocks and realty companies outperforming the market as investor risk appetite improved. FMCG stocks lagged and were the weakest segment of the day.
Analysts said the combination of falling crude prices and hopes for easing geopolitical tensions helped Indian equities close near the day’s highs. However, they cautioned that input cost pressures and foreign exchange risks remain, making a selective investment approach advisable. (Source: IANS)
