Domestic equity benchmarks traded flat in Wednesday's session after a three-day rally driven by lower crude oil prices and optimism over a US-Iran peace deal. According to Business Standard, at 13:25 IST, Sensex advanced 193.91 points or 0.26% to 76,998.28, while Nifty 50 jumped 44.85 points or 0.19% to 24,036.45. Earlier in the day, the 30-share index opened higher, rising 284.69 points or 0.37% to hit an intraday high of 77,093.17, while the 50-script basket began the day at 24,044.50, up 58.89 points or 0.24%. The muted performance came after Tuesday's strong rally that saw Sensex gain 0.46% to 76,616.74 and Nifty 50 rise 0.32% to 23,929.80, with both indices reaching day's highs. The broader market outperformed with BSE 150 MidCap Index gaining 0.36% and BSE 250 SmallCap Index adding 0.53%. Market breadth remained strong with 2,304 shares rising and 1,786 shares falling on the BSE, while 196 shares remained unchanged.
Metal stocks emerged as the biggest drag on the market, with Nifty Metal index declining 0.87 per cent in Wednesday's session. The sell-off followed a sharp decline in aluminium prices on the London Metal Exchange (LME) after the US-Iran interim agreement eased concerns over supply disruptions. As reported by Zee News, Hindalco Industries, NTPC, Trent, ONGC, Bharti Airtel, Dr Reddy's Laboratories and Axis Bank were among the top losers in the current session. Latest reports show Hindalco was the biggest drag, pulling the index down by 12.23 points, with National Aluminium leading the fresh short build-up category, with prices declining while open interest increased nearly 16%, pointing to aggressive bearish positioning. Vedanta, down 1.5%, was also among the prominent laggards in the Nifty 200 index, with four of its demerged entities listed on Monday after demerging from Vedanta effective May 1.
On the positive side, Nifty Consumer Durables was the top performer, gaining 1.26 per cent, followed by Nifty IT and Nifty Media. According to Business Standard, Trent surged 5.15%, Eternal gained 1.97%, Bharat Electronics rose 1.66%, Tech Mahindra advanced 1.58%, and Infosys climbed 1.22% among major Nifty 50 gainers. Healthcare and pharma stocks remained in demand, with Nifty Pharma advancing 0.24% and Nifty Healthcare rising 0.18%. In contrast, selling pressure was visible in metal and realty stocks, with Nifty Realty declining 0.68% and Nifty Auto, Private Bank and PSU Bank indices also trading in the red. Among Nifty 50 constituents, Tata Motors PV fell 2.78%, Cipla dropped 2.02%, Bajaj Finserv declined 1.64%, Mahindra & Mahindra fell 1.32%, and Eicher Motors dropped 1.10%. Latest data shows Oil & Gas and Energy indices also advanced 1.09% and 1.07% respectively, while FMCG and Financial Services posted gains of around 0.99%–1.01%.
Market sentiment turned cautious due to India's southwest monsoon stalling after reaching Kerala, leaving the country with a rainfall deficit of 35% as of June 16. According to Business Standard, the shortfall is most severe in central India (63%) and eastern and northeastern regions (43%), while the monsoon has yet to reach Mumbai, more than a week after its normal arrival date. The India Meteorological Department (IMD) expects the current slowdown to persist for another five to six days due to unfavorable weather conditions. In response, the Centre has placed 150-200 districts under close monitoring, asked states to prepare crop contingency plans, and warned that a weak monsoon could increase food inflation and pressure agricultural output. Despite the concerns, officials said seed, fertiliser and reservoir stocks remain adequate for now. The delay comes amid growing concerns over a developing El Niño, which typically weakens monsoon rains.
The market rally was supported by positive global cues, with Brent crude for August 2026 settlement falling 52 cents or 0.66% to $78.44 per barrel as markets assessed uncertainty around the US-Iran agreement. According to Business Standard, the positive factor is the steady and sharp decline in crude oil prices, with Brent crude falling by around 16 per cent over the last five days to about $79 per barrel, easing concerns over a widening balance of payments deficit in India. In the foreign exchange market, the rupee edged higher against the dollar, hovering at 94.3700 compared with its close of 94.6000 during the previous trading session. European markets traded lower with most European markets declining as UK inflation held at 2.8% in May from 2.8% in April, while Asia markets traded mostly lower Wednesday as traders looked ahead to the US central bank's interest rate decision. The negative factor is the deficient monsoon, which is raising concerns about food inflation, though experts noted that monsoon activity could improve in the coming days, easing such concerns.
