Indian equities shrugged off escalating tensions in West Asia and higher crude oil prices to finish marginally higher on Wednesday, supported by buying in banking, financial and auto stocks. Softer-than-expected US inflation data and easing concerns over US trade measures also helped lift investor sentiment.
The Sensex gained 130 points (0.17 percent) to close at 77,185.43, while the Nifty 50 rose 26 points (0.11 percent) to settle at 24,078.50.
Broader indices extended their gains, reflecting continued investor interest beyond large-cap stocks.
Nifty Midcap 100 advanced 0.28 percent
Nifty Smallcap 100 climbed 0.67 percent
Investors added nearly ₹1.5 lakh crore to their wealth as the market capitalisation of BSE-listed companies increased to about ₹481 lakh crore from ₹479.5 lakh crore in the previous session.
Financial and consumption-linked sectors led the market, while metal and IT stocks remained under pressure.
Top gaining sectors:
Nifty PSU Bank: +0.95 percent
Consumer Durables: +0.73 percent
Oil & Gas: +0.69 percent
Bank Nifty: +0.51 percent
Financial Services: +0.59 percent
Top losing sectors:
Nifty Metal: -1.11 percent
IT: -0.67 percent
FMCG: -0.49 percent
Media: -0.46 percent
Realty: -0.38 percent
Among Nifty 50 stocks, UltraTech Cement, Eternal and HDFC Life Insurance were the biggest gainers, while Hindalco Industries, Power Grid Corporation and Tata Steel ended as the top losers.
A cooling US inflation reading improved expectations that the US Federal Reserve may adopt a less aggressive approach to interest rates.
US consumer inflation eased to 3.5 percent in June from 4.2 percent in May, while core inflation slowed to 2.6 percent, lower than market expectations. The data boosted sentiment across global equity markets.
Investor confidence improved after US President Donald Trump withdrew his proposal to impose a 20 percent transit fee on vessels using the Strait of Hormuz. Instead, the US administration indicated it would pursue trade and investment agreements with Gulf countries while keeping the vital shipping route open to all vessels except those from Iran.
Another positive trigger came from Washington, where senators revised a proposed Russia sanctions bill by reducing the maximum tariff on major buyers of Russian energy, including India and China, from 500 percent to 100 percent.
The move eased concerns over the potential impact on India's energy imports and trade.
Investors accumulated banking, financial and automobile stocks ahead of the June quarter earnings season, expecting healthy results from leading lenders, NBFCs and vehicle manufacturers.
Despite the day's gains, geopolitical tensions continued to cap market optimism.
Reports indicated that US forces carried out strikes on Iran for a fourth consecutive day and reimposed a naval blockade around Iranian ports. Brent crude for September delivery rose above $86 per barrel, raising concerns over inflation and global growth.
The rupee ended marginally weaker at 96.2550 against the US dollar, compared with the previous close of 96.20.
Market experts believe the Nifty remains in a consolidation phase.
Immediate support: 24,000
Strong support zone: 23,900–23,700
Immediate resistance: 24,200
Breakout zone: 24,250
Next upside targets: 24,400–24,500
Unless the index decisively moves beyond this range, analysts expect the market to remain largely range-bound while tracking global developments, crude oil prices and the ongoing corporate earnings season.
