Stock markets ended on a mixed note on Wednesday, with the Sensex managing to stay in the green due to gains in FMCG and banking shares, while the Nifty closed slightly lower as selling pressure continued in broader markets.
The BSE rose 64.42 points, or 0.09%, to close at 73,983.18. However, the NSE Nifty50 slipped 27.15 points, or 0.12%, to settle at 23,214.95.
Markets had started the session strongly and the Sensex climbed over 400 points during the day, while Nifty touched an intraday high of 23,425.35. However, the benchmarks erased most of their gains due to profit booking in the second half of the session.
The positive sentiment was driven by cooling prices and growing expectations that tensions between Israel and Iran could see a diplomatic resolution.
Brent crude fell 0.24% to $91.23 per barrel, while WTI crude declined 0.18% to $88.10 per barrel. Lower oil prices provided relief to Indian markets as they reduce concerns around inflation and pressure on the country’s import bill.
The Indian rupee also strengthened during the session, rising 0.1% against the US dollar to close at 95.265.
FMCG and banking stocks emerged as the key support for the market.
The Nifty FMCG index rose 1.05%, making it the best-performing sector of the day, while Nifty Private Bank gained 0.72%.
Among Sensex stocks, Hindustan Unilever and Axis Bank were the biggest gainers, rising 1.70% each. Kotak Mahindra Bank gained 1.64%, ICICI Bank climbed 1.40%, ITC rose 1.30% and HDFC Bank advanced 1.16%.
Larsen & Toubro added 1.06%, while Sun Pharmaceutical Industries, Power Grid Corporation and Asian Paints also closed higher.
According to Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, investor confidence improved as crude oil prices remained contained and hopes of a resolution in the Israel-Iran conflict strengthened.
He said easing crude prices improved the outlook for domestic consumption-focused companies, resulting in renewed buying in defensive sectors such as FMCG.
Khemka added that banking stocks remained in focus after the Reserve Bank of India released operational details of its concessional forex swap facilities aimed at attracting overseas capital inflows, a move seen as supportive of liquidity and sentiment.
Despite the stability in benchmark indices, the broader market witnessed heavy selling.
The Nifty Midcap100 fell 1.49%, while the Nifty Smallcap100 dropped 1.33%.
Among sectoral indices, Nifty Realty was the worst performer, falling 1.74%. Nifty Metal declined 1.70%, Nifty Oil & Gas slipped 1.48%, Nifty PSU Bank fell 1.39%, and Nifty Media lost 2.36%.
The India VIX, often called the market’s fear gauge, rose 0.36% to 15.63, indicating that investors remained cautious despite easing geopolitical concerns.
On the losing side, Eternal was the biggest Sensex loser, falling 2.46%.
Mahindra & Mahindra declined 1.32%, Tata Steel dropped 1.99%, Bajaj Finserv fell 1.59%, Titan lost 1.48%, HCL Technologies declined 1.38% and Tata Consultancy Services slipped 1.33%.
IndiGo fell 0.32%, Reliance Industries declined 0.79%, Infosys slipped 0.90% and Bharti Airtel fell 1.18%.
Going ahead, investors will closely monitor developments in the Israel-Iran conflict and the movement in crude oil prices, as both remain key factors influencing market sentiment.
A sustained decline in oil prices could offer relief to India’s inflation outlook and support consumption-driven sectors. However, continued volatility in global markets and selling in broader stocks may keep investors cautious in the near term.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)