Stock markets ended marginally higher on Wednesday, recovering from intraday weakness with support from heavyweights like Reliance Industries, even as a falling rupee, elevated crude oil prices and global uncertainty continued to keep investors cautious.
The BSE rose 117.54 points, or 0.16%, to close at 75,318.39, while the NSE Nifty50 gained 41 points, or 0.17%, to settle at 23,659.
Markets remained volatile through the session as investors tracked rising global bond yields, persistent tensions in West Asia and concerns around the impact of high oil prices on India’s economy.
One of the biggest concerns for Dalal Street remained the Indian rupee, which touched another lifetime low on Wednesday.
The rupee slipped to 96.96 against the US dollar during the day before closing at 96.82. The currency has now weakened more than 6% since the Iran conflict began in late February.
The fall in the rupee has increased worries around imported inflation, rising fuel costs and pressure on India’s external finances.
Analysts said stalled US-Iran peace talks and rising global bond yields have made investors nervous, hurting risk appetite across emerging markets, including India.
The market found support from Reliance Industries shares, which jumped 2.8%, marking their best single-day gain in more than three weeks.
The stock had fallen nearly 10% over the previous 10 trading sessions, and Wednesday’s buying helped lift the broader indices.
Auto, financial and oil & gas stocks also saw selective buying support.
Vinod Nair, Head of Research at Geojit Investments Limited, said markets recovered from lower levels due to buying in large-cap stocks.
“Markets recovered from intraday lows, supported by selective buying in large cap stocks across autos, financials, and oil & gas. Autos and financials gained on relatively better Q4 earnings, while recent fuel price hikes supported sentiment for OMCs and refiners,” he said.
Crude oil prices eased slightly during the session but remained elevated.
Brent crude was trading near USD 109 per barrel, while India continues to face pressure as it imports around 90% of its crude oil requirements.
The Iran conflict has kept energy markets volatile for months, pushing global inflation concerns higher.
High crude oil prices are especially important for India because they directly impact fuel prices, inflation, transport costs and the rupee.
Vinod Nair said elevated crude prices and rupee weakness are still major concerns for investors.
“Persistent rupee weakness and elevated crude prices continue to weigh on sentiment due to concerns around inflation and margin pressures, while FII flows remain mixed,” he said.
WHICH STOCKS GAINED AND FELL?
Among major gainers on the Sensex and Nifty were:
On the losing side:
Among sectoral indices, Nifty Pharma rose 0.55%, while Nifty Healthcare gained 0.33%. Nifty IT also ended slightly higher.
However, several sectors remained under pressure:
Broader markets showed a mixed trend, with Nifty Midcap100 gaining 0.5% while Smallcap indices remained largely flat.
Global sentiment remained cautious as US bond yields stayed near multi-year highs.
Higher US Treasury yields reduce the appeal of equities for foreign investors and have led to heavy foreign selling in Indian markets this year.
Foreign investors have already sold nearly USD 23 billion worth of Indian equities in 2026, surpassing last year’s record outflows.
“Globally, risk appetite remains subdued as US bond yields stay near multi-year highs, tightening financial conditions and limiting equity upside,” Vinod Nair added.
Investors are now closely watching developments in the Iran conflict, crude oil prices, rupee movement, US bond yields, and the US Federal Reserve’s policy outlook.
Markets are also expected to react to upcoming global economic data and corporate earnings in the coming sessions.
(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.)