Indian stock markets ended marginally higher on Wednesday, recovering from intraday weakness with support from heavyweight stocks like Reliance Industries, even as currency and oil price concerns continued to weigh on sentiment. The BSE Sensex rose 117.54 points, or 0.16%, to close at 75,318.39, while the NSE Nifty50 gained 41 points, or 0.17%, to settle at 23,659. According to market reports, the recovery came despite ongoing volatility as investors tracked rising global bond yields, persistent tensions in West Asia, and concerns around the impact of high oil prices on India's economy. The broader market showed mixed trends, with the Nifty Midcap 100 gaining 0.5% and the Smallcap indices remaining largely flat. As per latest market data, GIFT Nifty rose 85 points in the afternoon session after the domestic market recovery, indicating positive momentum for the next trading session.
The Indian rupee continued its downward spiral, touching another lifetime low of 96.96 against the US dollar during the trading session before closing at 96.82. As reported by market sources, the currency has now weakened more than 6% since the Iran conflict began in late February, with the fall increasing worries around imported inflation, rising fuel costs, and pressure on India's external finances. The rupee's weakness was attributed to a stronger greenback and elevated crude oil prices that continued to pressure sentiment. The currency decline came amid ongoing currency weakness concerns that have been weighing on investor confidence throughout the trading session. The rupee ended at a fresh record closing low of 96.82, reflecting the persistent pressure on the domestic currency.
Crude oil prices eased slightly during the session but remained elevated, with Brent crude trading near USD 109 per barrel. According to market reports, while oil prices showed some moderation, they continued to stoke inflation concerns that were weighing on government bonds globally. The elevated oil prices, combined with geopolitical tensions, created an uncertain environment for market participants throughout the trading session. India continues to face pressure as it imports around 90% of its crude oil requirements, making high crude prices especially important for the country's economy. However, OMC stocks witnessed strong late-session performance after positive BPCL commentary, with oil marketing company stocks ending at day's highs.
The market found significant support from Reliance Industries, which jumped 2.83% marking their best single-day gain in more than three weeks. The stock had fallen nearly 10% over the previous 10 trading sessions, and Wednesday's buying helped lift the broader indices. Auto, financial and oil & gas stocks also saw selective buying support, with autos and financials gaining on relatively better Q4 earnings, while recent fuel price hikes supported sentiment for OMCs and refiners. As per Vinod Nair, Head of Research at Geojit Investments Limited, markets recovered from intraday lows due to buying in large-cap stocks across autos, financials, and oil & gas sectors. Banking stocks recovered sharply from intraday lows, with Nifty Bank closing above 53,500, while midcap stocks outperformed with the Midcap index gaining 300 points.
Global sentiment remained cautious as US bond yields stayed near multi-year highs, with higher US Treasury yields reducing the appeal of equities for foreign investors and leading to heavy foreign selling in Indian markets this year. Foreign investors have already sold nearly USD 23 billion worth of Indian equities in 2026, surpassing last year's record outflows. Among major gainers on the Sensex and Nifty, Reliance Industries led with its 2.83% gain, while Adani Ports and Power Grid also closed in the green. However, Hindustan Unilever lost 1.01%, and IT stocks remained mixed with Infosys and TCS ending nearly flat. Among sectoral indices, Nifty Pharma rose 0.55%, while Nifty Healthcare gained 0.33%, though several sectors remained under pressure. FMCG, media and IT stocks lagged the broader market recovery, with defensive consumption and media sectors underperforming despite the overall market rebound.
