Equity markets recovered on Wednesday as investor sentiment improved following a pullback in crude oil prices and stabilising global markets. The BSE Sensex jumped 620 points to close near 65,980, while the NSE Nifty50 added 185 points, ending the day at 19,845.
After two days of sharp declines linked to heightened geopolitical tensions in the Middle East, markets opened in positive territory and maintained momentum throughout the session. Analysts said easing fears of supply disruption in the Gulf, combined with softer crude oil prices, helped boost risk appetite among both domestic and foreign investors.
Heavyweight energy stocks led the gains, with Reliance Industries Ltd climbing over 3% and ONGC rising nearly 2.5% as lower oil prices reduced cost pressures and improved profit expectations. Infrastructure stocks, including JSW Infrastructure and Larsen & Toubro, also saw strong buying on optimism about government spending and upcoming project awards.
Banking shares contributed to the rally, with HDFC Bank and ICICI Bank gaining as traders anticipated stable credit growth and robust asset quality. Mid‑cap and small‑cap indices outperformed the broader market, indicating broad-based participation in the rebound.
On the downside, IT heavyweights like HCL Technologies, Infosys, and TCS slipped 1–1.5% amid profit-taking after recent rallies, and defensive sectors saw muted buying. Investors rotated funds from defensive to cyclical sectors, reflecting improved risk sentiment.
Globally, U.S. and European markets showed early gains, and Asian indices traded higher after a volatile start, boosting investor confidence in India. Analysts said that while volatility may continue depending on geopolitical developments, domestic macroeconomic fundamentals and corporate earnings remain supportive for equities.
Trading volumes were healthy, with strong participation from both retail and institutional investors. Market participants advised caution, noting that while the rebound is encouraging, any sudden escalation in Middle East tensions could trigger renewed volatility.
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