Benchmark stock market indices gave up most of their early gains to end marginally higher on Wednesday, as investors booked profits amid elevated crude oil prices and persistent geopolitical tensions in the Middle East despite positive global cues.
The S&P BSE settled 130.49 points, or 0.17%, higher at 77,185.43 after climbing more than 500 points during the session. The NSE Nifty50 also erased a large part of its intraday gains to close 27.70 points, or 0.11%, higher at 24,078.50.
The rally earlier in the day was driven by gains in financial stocks after softer-than-expected US inflation data improved global risk appetite. However, concerns over the ongoing US-Iran conflict and rising crude oil prices prompted profit booking in the latter half of the session, limiting the upside.
Brent crude was trading at $85.38 per barrel, up 0.77%, while WTI crude rose 0.88% to $80.04 as of 3:30 pm IST.
The broader market outperformed the benchmark indices. The Nifty Smallcap 100 gained 1.13%, while the Nifty 500 advanced 0.65%, Nifty 100 rose 0.61%, Nifty 200 climbed 0.58% and the Nifty Midcap 100 added 0.46%. India VIX, the market’s fear gauge, declined 4.92% to 13.07.
Among sectoral indices, Nifty Chemicals emerged as the top gainer with a rise of 1.65%, followed by Nifty PSU Bank (1.33%), Nifty Financial Services Ex-Bank (1.20%), Nifty Financial Services (1.17%), Nifty Private Bank (1.02%) and Nifty Oil & Gas (0.96%).
On the other hand, IT stocks remained under pressure. Nifty IT fell 0.64%, while FMCG, Metal and Media indices also ended in the red.
Among Sensex constituents, UltraTech Cement topped the gainers with a 2.96% rise, followed by Eternal (2.85%), SBI (1.50%), Bajaj Finance (1.49%), Tech Mahindra (1.30%), InterGlobe Aviation (1.09%) and Asian Paints (1.09%).
Power Grid was the biggest laggard, falling 1.73%, followed by Larsen & Toubro (-1.69%), Tata Steel (-1.65%), Infosys (-1.41%), NTPC (-1.12%) and Bajaj Finserv (-0.98%).
The rupee slipped 0.06% against the US dollar to close at 96.2550, caught between modest foreign portfolio inflows and dollar demand from local corporates, while traders continued to monitor crude oil prices.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “Domestic equities exhibited resilience, with broader markets outperforming large caps amid positive Asian cues. Softer US inflation data supported sentiment, while the Fed maintained its focus on price stability without turning more hawkish.
“Q1FY27 earnings remained the key domestic catalyst, though higher crude prices due to West Asia tensions capped gains and triggered profit booking. PSU banks gained on strong business updates, while textile and industrial stocks advanced as the India-UK trade deal went live. In contrast, metal stocks declined due to weak China GDP data and margin concerns from flat metal prices and rising crude costs. The IT sector also underperformed following weak preliminary results and commentary from IBM.”
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