Sensex, Nifty Rebound as Oil Prices Stabilize; Metal Stocks Lead Gains
Mumbai — Indian benchmark equity indices rebounded Wednesday as investor sentiment improved after crude oil prices stabilized around $100 per barrel amid hopes of renewed talks between the United States and Iran.
The Sensex rose 299.17 points, or 0.4 percent, to close at 74,828.25, while the Nifty gained 117.80 points, or 0.5 percent, to settle at 23,446.80.
Market analysts said the 23,450-23,500 range is likely to serve as the Nifty’s immediate resistance zone.
“A sustained move above 23,500 could strengthen the recovery and open the way toward 23,600, while failure to reclaim this zone could keep the index range-bound with a cautious bias,” market watchers said.
“On the downside, 23,300 remains the immediate support zone, while the next and stronger support is placed around 23,200. Momentum indicators suggest that selling pressure is gradually easing,” analysts added.
The recovery was led by buying in metal and financial stocks. Tata Steel, Bajaj Finance and Hindalco Industries were among the top gainers on the Nifty, helping the benchmarks recover after recent volatility.
Broader markets also recorded gains, with the Nifty MidCap index rising 0.7 percent and the Nifty SmallCap index advancing 0.89 percent.
Among sectoral indices, the Nifty Metal index gained more than 2 percent, supported by strength in major metal stocks. The Nifty FMCG index also outperformed several other sectors.
Technology stocks remained under pressure, however, making the Nifty IT index the worst-performing sector of the session.
Analysts said stabilizing crude oil prices and easing concerns over energy costs supported risk appetite and encouraged buying in domestic equities.
“This constructive macro backdrop supported buying interest across the market, helping domestic equities track gains in Asian peers,” experts said. (Source: IANS)
