Indian stock markets extended their winning streak for the fourth consecutive session on Wednesday as investors continued buying equities after crude oil prices declined following the US-Iran peace agreement. Lower oil prices improved market sentiment and supported gains across several sectors.
Strong Finish For Benchmark Indices
The BSE Sensex rose 347.14 points, or 0.45 percent, to close at 77,155.62. During the trading session, the index touched an intraday high of 77,218.99, gaining more than 410 points at one stage.
The NSE Nifty also ended higher, rising 96.55 points, or 0.40 percent, to settle at 24,085.70. The benchmark briefly crossed 24,100 during the day before giving up some gains near the close.
With this, both benchmark indices have now gained for four straight trading sessions.
Falling Oil Prices Lift Investor Confidence
Market experts said the continued decline in crude oil prices was one of the biggest reasons behind the rally.
Brent crude, the global benchmark, was trading near USD 79.10 per barrel. The easing of geopolitical tensions around the Strait of Hormuz after the US-Iran peace deal has reduced concerns about supply disruptions.
Lower crude prices are generally positive for India as they help reduce import costs, ease inflation pressures and improve the country’s current account balance.
According to Vinod Nair, Head of Research at Geojit Investments Limited, softer oil prices have kept investor sentiment positive and encouraged buying in equities.
Trent Leads Market Gainers
Among Sensex stocks, Trent emerged as the biggest gainer, surging 7.06 percent.
Other major gainers included Bharat Electronics, Eternal, Tata Steel, Infosys, Titan and Bharti Airtel. Buying was seen across technology, consumer and metal stocks.
On the other hand, Bajaj Finserv, Axis Bank, Kotak Mahindra Bank and Mahindra & Mahindra ended lower and limited the overall market gains.
Global Markets Mixed
Asian markets delivered a mixed performance. South Korea’s Kospi, Japan’s Nikkei and Shanghai’s SSE Composite ended in positive territory, while Hong Kong’s Hang Seng closed lower.
Foreign Institutional Investors (FIIs) remained net sellers and offloaded equities worth Rs 749.18 crore on Tuesday. Despite this, domestic buying and improving global sentiment helped Indian markets remain strong.