Stock markets rebound amid easing crude oil prices
Benchmark stock index Sensex rebounded by nearly 300 points and the broader Nifty settled near the 24,450 level on Wednesday as below $100 per barrel crude oil prices and a positive India growth forecast by rating agencies boosted buying in metal, financial and FMCG shares.
The 30-share BSE Sensex climbed 299.17 points, or 0.40 per cent, to settle at 74,828.25. During the day, it jumped 444.66 points, or 0.59 per cent, to 74,973.74.
The 50-share NSE Nifty was up 117.80 points, or 0.50 per cent, to end at 23,446.80.
Among the 30 Sensex firms, Tata Steel, Bajaj Finance, ITC, UltraTech Cement, Power Grid and Larsen & Toubro were the major winners.
HCLTech, Infosys, Tata Consultancy Services, Titan and Mahindra & Mahindra were among the laggards.
Brent crude, the global oil benchmark, edged up 0.35 per cent to $99.60 per barrel. “Indian equity benchmarks closed higher on Wednesday, with broad-based buying lifting the market as investors assessed signs of a possible de-escalation in West Asia.
Globally, hopes of easing tensions in West Asia and WTI crude remaining below $90 a barrel provided additional support to risk sentiment,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Global agencies S&P, Fitch, Asian Development Bank (ADB) and OECD on Wednesday raised India’s FY27 GDP growth projection to around 7 per cent, boosted by robust June quarter economic activity and resilient domestic demand despite conflict in West Asia.
“The combination of a more constructive geopolitical backdrop, softer oil prices and stronger domestic growth expectations gave investors greater confidence to extend buying beyond the large-cap segment,” Ponmudi added. The BSE SmallCap Select index rallied 0.85 per cent and the MidCap Select index was up 0.79 per cent.
Among the BSE sectoral indices, Metal surged 2.37 per cent, Commodities 1.64 per cent, MidSmall Private Banks Quality Tilt 1.49 per cent, MidSmall Private Banks 1.47 per cent, FMCG 1.30 per cent, PSU Bank 1.18 per cent, and Realty 1.11 per cent.
Focused IT tumbled 0.93 per cent and IT declined 0.77 per cent. A total of 2,809 stocks advanced, while 1,579 declined and 209 remained unchanged on the BSE.
“A stronger-than-expected September flash PMI reinforced confidence in the resilience of economic activity, indicating that growth remains intact without a corresponding build-up in inflationary pressures.
This constructive macro backdrop supported buying interest across the market, helping domestic equities track gains in Asian peers,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
