Mumbai, Oct 23 (ANI): A view of the newly renovated atrium, the iconic NSE Bull, and the refreshed façade of the National Stock Exchange (NSE) Bull, at the National Stock Exchange headquarters, in Mumbai on Tuesday. (ANI Photo)
Mumbai, June 17 (ANI): Indian equity benchmark indices extended gains for the fourth consecutive session on Wednesday, supported by easing crude oil prices and positive global cues.
The BSE Sensex closed at 77,155.00, up 347.14 points, while the Nifty 50 settled at 24,085.70, gaining 96.55 points, or 0.4 percent.
Market sentiment remained upbeat after international crude oil prices slipped below the $80-per-barrel level amid expectations of improved global energy supplies following progress in the US-Iran peace agreement.
Lower oil prices are seen as positive for India, a major crude importer, as they help ease inflationary pressures and support corporate earnings.
Buying interest was visible across most sectoral indices, with information technology, defense, and select consumer-focused stocks leading the gains. Broader markets also outperformed, with midcap and small-cap indices ending in positive territory.
The breakthrough in the US-Iran peace deal raised hopes of the Strait of Hormuz reopening, sending Brent crude to a three-month low. Benchmark Brent crude was trading at around $79 per barrel at 4:11 p.m. IST and touched an intraday low of $78.13 per barrel, declining for the second consecutive session.
Abhishek Kumar, market analyst and founder of SahajMoney, said, “The rally through this week, extended into Wednesday’s session, is primarily driven by progress on the US-Iran peace accord expected to be signed in Switzerland. This breakthrough has cleared the way for the reopening of the Strait of Hormuz, sending Brent crude down to roughly $79, which is a three-month low.”
According to Kumar, lower crude prices provide a significant tailwind for India.
“For an import-dependent country like India, lower crude prices provide a significant tailwind by lowering the import bill, cooling inflation, and lifting earnings for oil-sensitive sectors like paints, aviation, and tires,” he said.
India VIX stood at 13.36 as sentiment remained constructive but cautious ahead of the formal signing of the ceasefire agreement.
Among the sectoral indices, the Consumer Durables index gained 2.11 percent and the IT index rose 0.79 percent, while PSU banks provided steady support. In contrast, auto and metal stocks slipped amid profit booking after recent gains.
Mahesh M. Ojha of KC Securities said corporate developments also supported sentiment.
“As we have seen the US and Iran deal progressing, India’s crude oil bill will decline, which is a major relief from the Indian market perspective. After the deal announcement, investor confidence has returned and we have seen buying in large-cap stocks,” he said.
The broader market showed mixed breadth as traders awaited greater geopolitical clarity. Sentiment remains constructive, with oil-sensitive sectors likely to remain in focus until the truce is formally signed. (ANI)
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