Indian equity benchmarks ended higher for the fifth straight day on Wednesday, supported by a decline in global crude oil prices and growing optimism over a potential peace deal between the United States and Iran. The 30-share BSE Sensex climbed 254.36 points, or 0.33 per cent, to settle at 77,409.98. During the trading session, the benchmark index touched a high of 77,492.33 and a low of 76,953, swinging 539.33 points.
The broader NSE Nifty also advanced, gaining 72.65 points, or 0.31 per cent, to close at 23,567.80. The positive sentiment was largely attributed to easing crude oil prices, which fell on expectations of increased supply following a potential US-Iran agreement. Lower oil prices are beneficial for India, a major importer of crude, as they help reduce the country's import bill and inflation pressures.
Market Drivers
Investors remained optimistic about the possibility of a diplomatic resolution between the US and Iran, which could lead to a relaxation of sanctions and higher oil exports. This development, coupled with a stable global economic outlook, boosted risk appetite. Sector-wise, banking, auto, and IT stocks led the gains, while metal and pharma stocks witnessed some profit booking.
Expert View
Market analysts noted that the rally was broad-based, with midcap and smallcap indices also outperforming. The positive momentum is expected to continue if crude prices remain under control and global cues remain favorable. However, they cautioned that any escalation in geopolitical tensions could reverse the trend.
The Indian rupee also strengthened against the US dollar, trading at 83.45, as foreign institutional investors continued to pour funds into domestic equities. The overall market capitalization of BSE-listed companies rose to a new high, reflecting strong investor confidence.
