Markets staged a strong comeback on Wednesday, with the Sensex rallying more than 650 points and the Nifty crossing the 24,000 mark after a sharp selloff in the previous session. The rebound came as lower crude oil prices, steady buying in banking stocks and improved risk appetite helped lift investor sentiment.
The recovery followed Tuesday’s steep decline, which had erased nearly ₹5.8 lakh crore in market value amid weak global cues, foreign fund outflows and heavy selling in IT counters. On Wednesday, however, buyers returned to the market, helping benchmark indices recover a large part of the lost ground.
A key support for the market was the continued softness in global crude prices. With supply concerns easing and more oil shipments moving through the Strait of Hormuz, crude hovered near four-month lows. That brought relief to India, which depends heavily on imported oil, and eased worries about inflation and the current account deficit.
Banking stocks led the rally, while auto and metal shares also saw healthy buying. On the other hand, IT and FMCG stocks remained under pressure, making them the main laggards in an otherwise upbeat session. Investors also kept an eye on stock-specific moves in names such as Vedanta, Honasa Consumer, IRCTC, Tata Motors and Bajaj Auto.
Bajaj Auto, however, stayed in focus for the wrong reasons after the company disclosed a ransomware attack affecting both the firm and its technology subsidiary. The development weighed on the stock even as the broader market recovered.
The rupee slipped slightly against the US dollar despite the fall in crude prices, reflecting caution among traders and a stronger greenback globally. Market participants also continued to track signals from the US Federal Reserve, where expectations of further rate hikes have kept global markets on edge.
Also Read: Renault begins exporting India-made Duster to South Africa