The Indian equity benchmark indices, Sensex and Nifty, staged a recovery on Wednesday after witnessing a steep fall in the previous trading session.
The rebound was primarily driven by a combination of easing global crude oil prices, renewed foreign institutional investor (FII) participation, and buying interest in large-cap blue-chip stocks, especially in the information technology sector.
By 10:15 am, the Sensex had gained 427.53 points, or 0.56 per cent, to trade at 76,628.21.
Meanwhile, the NSE Nifty advanced 91.70 points, or 0.38 per cent, reaching 23,915.80. This recovery came a day after both indices had experienced significant losses.
On Tuesday, the Sensex had plunged 893.39 points, or 1.16 per cent, to close at 76,200.68, while the Nifty had fallen 278.80 points, or 1.16 per cent, ending the session at 23,824.10.
Sectorally, the market showed broad-based strength. Almost all Nifty sectoral indices were trading in positive territory, with the exception of auto, metal, and consumer durables, which lagged behind the broader recovery.
The information technology index stood out as one of the strongest performers, rising nearly 1 per cent and outperforming the broader market.
The positive sentiment in global commodities also contributed to the rebound. Brent crude oil prices, the international benchmark, declined by 1.02 per cent to USD 76.29 per barrel.
Prices hovered near four-month lows, supported by expectations that more oil tankers previously stranded in the Persian Gulf due to geopolitical tensions around the Iran conflict were gradually resuming movement through the Strait of Hormuz.
This eased concerns over supply disruptions and inflationary pressures.
Foreign institutional investors also turned net buyers, purchasing equities worth Rs 17.86 crore on Tuesday, which helped stabilize market sentiment after the previous day’s sell-off.
Additional support came from geopolitical and trade-related optimism. A senior United States official indicated that India and the US were “very, very close” to finalising a bilateral trade agreement.
The proposed deal is expected to open up India’s large consumer market of over 1.4 billion people to American goods on mutually beneficial terms, further boosting investor confidence.
Global cues were also supportive. Asian markets, including South Korea’s Kospi and Hong Kong’s Hang Seng Index, traded higher during the session, providing positive signals for Indian equities.
Within the domestic market, IT stocks led the recovery. The Nifty IT index rose nearly 1 per cent, outperforming the broader Nifty 50, which gained 0.3 per cent.
Among individual gainers, Tech Mahindra surged 2.6 per cent, Infosys advanced 1.3 per cent, and Tata Consultancy Services rose 0.6 per cent.
Overall, the combination of easing crude prices, selective foreign inflows, supportive global cues, and optimism around trade negotiations helped Indian equities recover from the previous day’s sharp losses.