Indian equity markets traded with a positive bias on Wednesday, as benchmark indices recovered in early trade. The Sensex gained around 300 points, while the Nifty moved back above the 24,150 level, supported by improved global sentiment and easing crude oil prices. Investors continued to track international cues and domestic institutional support for direction.
Buying interest was seen across select auto and financial stocks, with Bajaj Auto emerging as one of the notable gainers in early trade. Paytm also saw strong activity, reflecting renewed interest in select digital and mid-cap counters. Broader market sentiment remained constructive, although stock-specific volatility continued to dominate trading patterns.
On the losing side, select IT and FMCG stocks witnessed mild profit booking after recent gains. Export-oriented IT names came under pressure amid global uncertainty and currency fluctuations, while defensive FMCG stocks saw some selling as investors rotated into cyclical sectors.
A key driver of the market recovery was the softening of crude oil prices, which eased concerns over inflationary pressures and improved the outlook for corporate margins. This particularly benefited sectors such as autos, aviation, and consumer discretionary, which are sensitive to fuel costs.
Global market trends also supported domestic sentiment. Asian equities traded firm, helping Indian indices maintain upward momentum. However, foreign institutional investor (FII) outflows continued to weigh on sentiment, limiting the strength of the overall rally. Domestic institutional investors (DIIs) provided partial offset through consistent buying support in select large-cap stocks.
The Indian rupee showed relative stability, adding to investor confidence and reducing fears of imported inflation pressures. This currency stability, combined with easing crude prices, contributed to a more balanced near-term outlook for equities.
Despite the rebound, analysts noted that market volatility remains elevated.