Benchmark indices extended their winning streak to a fourth consecutive session on Wednesday, supported by lower crude oil prices, a stronger rupee and improving investor sentiment following the US-Iran peace agreement.
The S&P BSE rose 347.14 points, or 0.45%, to settle at 77,155.62, while the NSE Nifty50 gained 96.55 points, or 0.40%, to close at 24,085.70. With Wednesday’s advance, the Sensex has gained 4.5% and the Nifty about 4% over the last four trading sessions, marking their longest winning streak in two months.
The market rally continued as crude oil prices remained near multi-month lows after the preliminary peace agreement between the United States and Iran reduced fears of supply disruptions through the Strait of Hormuz.
Brent crude traded near $79 a barrel, while oil prices remained close to their lowest levels in nearly three months. Lower oil prices are a significant positive for India as they ease inflationary pressures, improve the current account balance and support the rupee.
The positive global backdrop also helped sentiment, with broader Asian markets ending about 0.3% higher.
Among sectoral indices, Nifty Consumer Durables emerged as the top performer, rising 2.11%, followed by Nifty PSU Bank, which gained 1.75%, Nifty IT, up 0.85%, and Nifty Financial Services ex-Bank, which advanced 0.90%.
Metal stocks also rebounded, with the Nifty Metal index rising 1.01%, while Nifty FMCG gained 0.68%.
However, some sectors witnessed profit booking. Nifty Auto declined 0.62%, Nifty Realty slipped 0.43%, while Nifty Pharma ended 0.05% lower.
Among Sensex stocks, Trent was the biggest gainer, surging 7.06%. BEL climbed 3.06%, Eternal gained 1.95%, Tata Steel rose 1.53%, Infosys added 1.29%, while Titan gained 1.09%.
Other major gainers included Bharti Airtel, TCS, Sun Pharma, SBI and Tech Mahindra.
On the losing side, Bajaj Finserv fell 1.16%, Axis Bank declined 1.09%, Kotak Mahindra Bank slipped 0.88%, M&M lost 0.51%, Maruti dropped 0.45%, while Asian Paints declined 0.43%.
The broader market continued to outperform frontline indices.
The Nifty Smallcap 100 rose 0.79%, while the Nifty Midcap 100 gained 0.52% and Nifty Midcap 50 added 0.30%.
Meanwhile, India VIX, the market’s fear gauge, declined 1.30% to 13.19, indicating easing volatility and improving risk appetite.
Vinod Nair, Head of Research at Geojit Investments Limited, said the rally was supported by softer bond yields, a firmer rupee and easing geopolitical concerns.
“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,” he said.
However, Nair noted that concerns over delayed monsoon progress and low reservoir levels triggered some intraday profit booking, although late-session short covering helped markets close with gains.
Investors will now closely watch the US Federal Reserve’s policy decision and commentary for cues on future interest rates, along with the progress of the monsoon and foreign investor activity.