The stock markets bounced back on Wednesday, with the Sensex gaining nearly 300 points and the Nifty rising more than 110 points as softer crude prices, stronger domestic economic data and easing concerns over the US-Iran conflict lifted investor sentiment.
The BSE Sensex climbed 299.17 points, or 0.40%, to close at 74,828.25. The NSE Nifty 50 gained 117.80 points, or 0.50%, to end at 23,446.80. The recovery came a day after both benchmarks had fallen sharply during the closing session.
The Nifty opened at 23,352.15 and moved between 23,349.55 and 23,466.90 during the session before settling near the day’s higher levels. Market breadth was positive, with 36 of the 50 Nifty stocks ending in the green and 14 closing lower.
The rebound was supported by a combination of domestic and global factors. Investors took some comfort from September’s flash Purchasing Managers’ Index data, which pointed to continued strength in India’s economic activity without a matching rise in inflation pressures.
The data helped shift attention back to domestic growth after markets had been weighed down by geopolitical uncertainty and oil-price swings. Analysts said investors were also watching crude prices closely because any sustained rise in oil could put pressure on India’s import bill, inflation and the rupee.
Brent crude remained below the $100-a-barrel mark on Wednesday, providing some relief to Indian equities. Oil prices had earlier risen sharply because of concerns about supply disruptions linked to the conflict involving the US and Iran. Hopes of diplomatic progress helped ease some of those concerns.
Metal stocks were among the biggest drivers of the day’s gains. The Nifty Metal index rose more than 2%, with buying seen across several metal companies. Nifty FMCG gained 1.27%, Nifty Pharma rose 0.72%, Nifty PSU Bank advanced 0.97% and Nifty Auto added 0.25%.
Bajaj Finance emerged as the biggest Nifty 50 gainer, rising 3.41%. Hindalco Industries gained 3.17%, while Tata Steel advanced 3.16%. The strength in these stocks helped the broader market recover after Tuesday’s sharp sell-off.
Other stocks that supported the Sensex included Bajaj Finserv, Larsen & Toubro, Power Grid, UltraTech Cement and Reliance Industries. Economic Times market data showed several of these stocks among the leading Sensex gainers during the session.
The IT sector, however, remained a weak spot. The Nifty IT index fell more than 1%, making it the biggest sectoral laggard. Nifty Media also declined, slipping 0.63%.
Among individual Nifty stocks, HCL Technologies was the biggest loser, falling 1.08%. Titan Company declined 0.98%, while Infosys slipped 0.86%. These losses limited the overall rise in the benchmark indices.
TCS was also among the weaker Sensex constituents, while HCL Tech, Infosys and Titan remained under pressure. Economic Times data showed TCS, Infosys and HCL Tech among the major Sensex losers during the day.
The broader market also showed signs of recovery. Buying was not limited to a handful of large companies, with participation across several sectors helping improve overall market breadth. The positive advance-decline ratio suggested that investors were willing to return to stocks after the previous day’s volatility.
The rupee and foreign fund flows remained important factors for investors. The Indian currency has been under pressure from elevated crude prices, a firm US dollar and foreign investor selling. Lower oil prices provided some relief, although analysts continued to flag sustained foreign institutional investor outflows as a risk for Indian equities.
Global markets also offered some support. Asian equities were mixed, with Japan’s Nikkei, Taiwan’s benchmark and South Korea’s Kospi ending higher, while Hong Kong’s Hang Seng declined. The positive performance of several Asian markets helped improve the overall risk mood.
Investors are now likely to keep a close watch on crude oil, US-Iran developments, global bond yields, foreign institutional flows and upcoming corporate earnings. The market’s recovery on Wednesday showed that buyers were willing to step in after the previous session’s decline, but volatility remains high.
Gold and silver also moved lower during the session. Gold fell 0.54% to ₹1,52,889 per 10 grams for 24-carat purity, while silver declined more than 1% to ₹2,37,341 a kg at the time of reporting.
The Wednesday session therefore brought some stability back to Dalal Street. The Sensex regained ground above 74,800 and the Nifty moved back above 23,400, with metals, banks and consumer stocks leading the recovery. However, global geopolitical developments and crude prices remain key factors that could influence the next market move.