Indian stock market closed in the green, with Sensex and Nifty rising over 0.4% each to extend gains for the fourth consecutive session following the Iran-US deal framework and a sharp correction in oil prices, which have now dropped below $80 per barrel.
Sensex rose 347 points to close at 77,156, while Nifty 50 gained around 97 points to end the session at 24,086 on Wednesday. This came as India VIX, which measures volatility in the market, dropped over 1% to 13.20.
Trent shares were the top gainers on the Sensex, jumping over 7%. Bharat Electronics (BEL) shares followed, soaring nearly 4%, while Eternal and Tata Steel shares gained nearly 2% each. Bucking the trend, Bajaj Finserv and Axis Bank shares dropped over 1% each.
Broader markets also extended gains, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 0.5-0.8%. Sectorally, the Nifty Consumer Durables and Nifty PSU Bank indices gained around 2% each to lead gains, while the Nifty Auto index declined 0.6%. Market breadth was positive, with 1,923 stocks advancing on the NSE, while 1,396 declined and 111 remained unchanged.
Iran and the US agreed to a framework for their much-awaited peace deal recently, with details of the interim agreement emerging on Tuesday. US President Donald Trump said the deal would rule out a nuclear weapon for Tehran, while a US official said that it would allow Iran to sell oil upon signing.
Oil prices continued to decline, falling below $80 per barrel amid rising optimism. Brent crude futures fell 0.28% to $78 per barrel, while WTI crude futures declined around 0.3% to $76 per barrel, as seen on Wednesday morning.
What lies ahead?
Indian equities extended their gains for a fourth straight session, supported by softer bond yields and a firmer rupee despite mixed global cues ahead of the Fed’s policy decision, said Vinod Nair, Head of Research at Geojit Investments. He added that continued weakness in crude oil prices, driven by easing geopolitical tensions around the Strait of Hormuz, has kept investor sentiment buoyant.
“Gains were led by IT and metals on expectations of a stable US rate cycle and improving global demand, while PSU banks gained on mark-to-market gains and capital relief from ECLGS risk-weight easing. Although concerns over delayed monsoons and low reservoir levels triggered some intra-day profit booking, late-session short covering helped indices close with modest gains,” he added.
On the downside, 24,000 is expected to act as immediate support for the Nifty going forward, according to Rupak De, Senior Technical Analyst at LKP Securities. A breach below this level could trigger a correction towards 23,800. Conversely, a decisive move above 24,100 may pave the way for a rally towards 24,300 and higher, he added.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own and do not represent the views of The Economic Times.)
