Indian Stock Market Sees Significant Gains as Oil Prices Ease

Indian Benchmark Indices Rebound Sharply on Easing Crude Oil Prices and Renewed Hopes of US-Iran Talks

Indian benchmark indices, the Sensex and the Nifty, opened sharply higher on Wednesday, rebounding from the previous session's decline, as easing crude oil prices and renewed hopes of US-Iran talks improved global risk sentiment. At 09:19 am, the Sensex rose 1,279 points, or 1.66 percent, to 78,127, while the Nifty surged 384 points to 24,226, reclaiming the 24,000 mark. Market breadth was firmly positive, with 2,509 stocks advancing against 382 declines.

The rally was broad-based, with InterGlobe Aviation leading gains, rising over 4 percent. Other key gainers included Hindalco, Shriram Finance, UltraTech Cement, Adani Enterprises, Infosys, Larsen & Toubro, Bajaj Finance, and HCL Tech, all of which gained between 2 percent and 3.5 percent. On the downside, Dr Reddy's Laboratories was the top loser, down about 2.7 percent.

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All major sectoral indices traded in the green, led by realty, consumer durables, IT, metals, and PSU banks, which rose around 2 percent each. India VIX declined nearly 11 percent to 18.29, indicating easing volatility.

The positive start follows a firm trend in GIFT Nifty, which had signalled a gap-up opening, supported by improving global cues. Asian markets traded higher, while Wall Street extended gains overnight, with the Nasdaq rising 2 percent to mark its tenth straight session of gains and the S&P 500 moving closer to record highs.

Crude oil prices declined for a second straight session, with Brent falling below $95 per barrel, after reports indicated that the US and Iran may resume talks in the coming days. The easing in oil prices is seen as supportive for India, helping reduce inflationary pressures and input costs across sectors.

Analysts said the rebound also reflects buying interest at lower levels after Monday's decline, when markets had reacted sharply to a spike in crude prices following the breakdown of US-Iran negotiations. Despite the strong opening, experts caution that the sustainability of the rally will depend on continued positive developments on the geopolitical front and sustained buying interest.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

From a technical perspective, the Nifty is approaching a key resistance zone around 24,200-24,400, with a sustained move above this band required to extend gains. Kotak Securities noted that 24,100 could act as a near-term pivot, with further upside towards 24,300-24,500 only if the index holds above this level.

Analysts also flagged that foreign investor activity remains a key monitorable, with FIIs having been net sellers in the previous session, while domestic investors provided support.