Market Update

Indian Equities Rise for Second Straight Session

On Wednesday, the Sensex and Nifty benchmark equity indices extended their recovery for a second consecutive session, supported by easing geopolitical tensions and a decline in crude oil prices.

Nifty Performance

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The Nifty opened strongly, tracking positive global cues, and saw steady buying throughout the session. However, marginal profit booking in the final hours trimmed gains, with the index settling at 23,306.45, up 394.05 points or 1.72%.

Sensex Performance

The Sensex climbed 1,205 points or 1.63% to close at 75,273.45. During the session, it surged 1,781.31 points or 2.4% to touch 75,849.76.

Market Analysis

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

Investor sentiment improved significantly amid reports of potential US-Iran negotiations, which helped cool crude oil prices below the USD 100 mark. However, despite the rebound, the India VIX volatility index remained elevated, indicating continued caution amid persistent FII outflows and weakness in the rupee.

Technical Analysis

Analysts noted that the 23,400 level is seen as a key resistance for the Nifty, and a move above it could trigger a fresh leg of rally. Immediate resistance for the Nifty is placed in the 23,400–23,450 zone. A sustainable move above this zone could result in the Nifty extending its pullback towards 23,600, followed by 23,800 in the short term.

Sectoral Performance

All sectoral indices ended higher, with BSE MidSmall Private Banks Quality Tilt surging 3.7%, followed by commodities (2.75%), PSU Bank (2.61%), reality (2.53%), metal (2.51%), industrials (2.49%), and services (2.42%).