Benchmark equity indices rebounded on Wednesday, recovering from sharp intraday losses amid late buying support and a strong rally in heavyweight Reliance Industries.
After witnessing heavy selling pressure during most of the trading session, markets bounced back in the final hours to close in positive territory. The 30-share BSE Sensex advanced 117.54 points, or 0.16 per cent, to settle at 75,318.39. Earlier in the day, the benchmark had plunged as much as 671.44 points, or 0.89 per cent, to touch an intraday low of 74,529.41.
The broader NSE Nifty also managed to end higher, gaining 41 points, or 0.17 per cent, to close at 23,659. Among the Sensex constituents, Reliance Industries emerged as the top gainer, rallying 2.83 per cent and lending significant support to the benchmarks. Other major gainers included Bajaj Finserv, Trent, InterGlobe Aviation, Axis Bank and Mahindra & Mahindra. On the losing side, shares of Bharat Electronics, Tech Mahindra, Eternal and Tata Steel ended lower.
Meanwhile, Brent crude prices traded around 2 per cent lower at USD 109 per barrel in the international market. According to Vinod Nair, Head of Research at Geojit Investments Limited, markets recovered from the day’s lows due to selective buying in large-cap stocks, especially in the automobile, financial and oil & gas sectors.
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However, he noted that persistent weakness in the rupee and elevated crude oil prices continued to impact investor sentiment because of concerns related to inflation and pressure on corporate margins. He also pointed out that foreign institutional investor (FII) flows remained mixed.
Across Asia, key markets including Kospi, Nikkei 225, SSE Composite Index and Hang Seng Index closed lower. European markets, however, were trading in positive territory, while US markets had ended lower on Tuesday.
In global developments, Donald Trump said on Tuesday that he was close to approving renewed attacks on Iran but postponed the decision after receiving calls from intermediaries, including Qatar and United Arab Emirates, who indicated that Tehran was being ‘reasonable’ in peace negotiations.
According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 2,457.49 crore on Tuesday. In the previous trading session on Tuesday, the Sensex had fallen 114.19 points, or 0.15 per cent, to close at 75,200.85, while the Nifty slipped 31.95 points, or 0.14 per cent, to settle at 23,618.
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