Benchmark indices snap two-day decline as easing crude oil lifts sentiment

The Sensex and Nifty gained 0.6 per cent on Wednesday as easing crude oil prices, gains in financials and auto stocks, and strong domestic institutional buying lifted market sentiment

Easing crude oil prices lifted investor sentiment on Wednesday, helping Indian benchmark indices snap their two-day decline and post gains. Buying in financial, automobile and consumer goods stocks outweighed weakness in information technology (IT) shares. The benchmark Sensex ended Wednesday’s session at 76,923, a gain of 444 points or 0.6 per cent. The Nifty, meanwhile, ended the session at 24,006, up 140 points or 0.6 per cent. The total market capitalisation of BSE-listed firms rose by ₹2.4 trillion to end the session at ₹476.5 trillion.

 

The sustained decline in global oil prices has eased concerns over India's import bill, inflation, and corporate margins. Brent crude spot prices stood at $72.6 per barrel, a decline of 2.1 per cent, on Wednesday. Brent crude prices are back to their pre-war levels, and have declined by 38 per cent from their recent peaks. Though crude oil prices have declined, uncertainty persists about the geopolitical tensions in West Asia. Iran on Tuesday said it would not meet top US envoys who flew to Doha after the outbreak of hostilities.

 

 

“The domestic markets entered the second half of calendar year 2026 (H2CY26) on an optimistic footing as multiple headwinds began to abate, with the anticipated US-India trade agreement, easing West Asia tensions, and benign oil prices emerging as the key drivers of positive sentiment. The recovery was broad-based, with largecaps outperforming due to favourable valuations and expectations of a partial reversal of FPI (foreign portfolio investor) sentiment following two years of outflows. While near-term sentiment remains constructive, markets are likely to stay data-dependent, with investors balancing improving domestic fundamentals against evolving global macroeconomic and geopolitical developments," said Vinod Nair, head of research at Geojit Investments.

 

Market breadth was mixed, with 2,222 stocks advancing and 2,059 declining. FPIs were net sellers worth ₹1,141 crore, while domestic institutional investors (DIIs) were net buyers worth ₹3,159 crore.

 

“Going ahead, the immediate resistance for the Nifty is placed in the 24,130-24,150 zone. Any sustainable move above this zone could extend Nifty's pullback towards 24,300, followed by 24,450 in the short term. On the downside, the immediate support for the Nifty is placed in the 23,870-23,850 zone,” said Sudeep Shah, head - technical and derivatives research at SBI Securities.

 

Eternal, which rose 5.7 per cent, was the biggest gainer in the Sensex pack and the biggest contributor to its gains. Reliance Industries, which rose 1.09 per cent, was the second-biggest contributor to index gains. The weightage of Sensex constituents and their movements on a given day influence index gains or losses.