Indian equity markets extended gains for the fourth consecutive session on Wednesday, with the BSE Sensex closing at 77,156 points, up 347 points and the Nifty 50 index settling at 24,086 points, gaining 97 points or 0.4%. According to ETMarkets, market sentiment remained upbeat after international crude oil prices slipped below the USD 80-per-barrel level amid expectations of improved global energy supplies following progress in the US-Iran peace agreement. Market expert Neeraj Dewan from The Economic Times noted that the sharp decline in crude oil prices has significantly eased one of the biggest concerns weighing on Indian equities. As reported by The Economic Times, Dewan emphasized that oil was the biggest worry for investors and one of the reasons why Foreign Institutional Investors (FIIs) were not looking at India. With oil prices now at very good levels, there may be further downside if Middle East conditions remain stable.
Investor sentiment has strengthened significantly following the White House confirmation that US President Donald Trump has formally signed the Peace Deal Memorandum, marking a significant step forward in the broader US-Iran peace process. According to Moneycontrol, the agreement is expected to facilitate the reopening of the Strait of Hormuz, easing geopolitical risks, reducing energy-market uncertainty and improving global risk appetite. As noted by Rajesh Palviya, Head of Research at Axis Direct, "For Indian markets, softer crude prices continue to provide an important macro cushion by supporting the inflation and fiscal outlook." The development has provided crucial relief to markets that had been weighed down by geopolitical uncertainties in the Middle East region. Brent crude fell as far as $77.75 a barrel, down more than a third from April peaks after reports the United States may waive sanctions on Iranian oil under a deal to end the war. As per ETMarkets, the International Energy Agency said the oil market will move into a significant supply surplus in 2027 after recovering from the closure of the Strait of Hormuz.
Markets opened on a mildly positive note on Tuesday but slipped into the red within minutes of trading, with benchmark indices weighed down by sharp selling in information technology stocks even as pharma and financial names provided support. According to The Hindu BusinessLine, Sensex, which closed at 77,094.07 on Monday, opened at 77,086.05 and was trading at 77,022.40, down 71.67 points or 0.09% at 9.25 am, while Nifty 50, which ended the previous session at 24,102.90, opened at 24,071.30 and was quoting at 24,086.50, down 16.40 points or 0.07%. Monday's session had ended on a positive note, with the Nifty gaining 89.8 points or 0.37% and the Sensex advancing 291 points, supported by pharma stocks and a rebound in IT. Defence, media and pharma indices rose over 1% in that session, though select consumer and FMCG stocks saw intraday profit booking. Among early gainers on Tuesday, Dr. Reddy's Laboratories led the pack, rising 1.53% to ₹1,310.50, Trent gained 1.43% to ₹3,226.20, and Shriram Finance rose 1.03% to ₹1,003.05. On the losing side, Infosys fell the most, declining 2.21% to ₹1,041.90 on heavy volumes of over 22.30 lakh shares worth ₹23,214.14 lakhs, while Hindalco dropped 2.07% to ₹993.20 and TCS fell 1.37% to ₹2,098.70.
From a technical perspective, Nifty is approaching resistance at the 100-day DEMA around 24,153, a level that capped rallies in April and May. As reported by Moneycontrol, a decisive close above the 100 DEMA would be a significant development, potentially confirming a bullish trend reversal. If Nifty sustains above 24,153, the next upside target is seen near the 200 DEMA at 24,465. According to ETMarkets, on the downside, 24,000 is expected to act as immediate support for the Nifty going forward, according to Rupak De, Senior Technical Analyst at LKP Securities. A breach below this level could trigger a correction towards 23,800, while a decisive move above 24,100 may pave the way for a rally towards 24,300 and higher. Shrikant Chouhan of Kotak Securities noted that "below 24,100/77,200, we could see a gradual intraday correction to 23,900–23,800/76,500–76,200," adding that "level-based trading would be an ideal strategy for day traders."** The recovery comes despite the anticipated NSE IPO drawing investor attention, with Dewan expecting some short-term pressure on BSE shares but not seeing it as a structural concern.
Among individual stocks, shares of financial firms holding stakes in the National Stock Exchange gained after the exchange filed draft papers for its initial public offering on Wednesday. As reported by Moneycontrol, The New India Assurance Company (NIACL) surged 14% after the insurer announced plans to sell 1.05 crore shares. Textile and alcoholic beverage stocks also witnessed buying interest after India and the UK agreed on July 15 as the implementation date for their free trade agreement. Among the gainers, United Spirits rose 2.4% to ₹1,339.10, Tilaknagar Industries climbed 3.3% to ₹443, Associated Alcohols & Breweries advanced 2.1% to ₹843.95, and Radico Khaitan added 1.3% to ₹3,619. The weakness in IT stocks reflected global cues, with the Nasdaq underperforming overnight amid profit-taking in large-cap technology names. Metals too remained under pressure as reflected in Hindalco and Tata Steel's early losses. On the trade front, U.S. Trade Representative Jamieson Greer is expected to visit India this week for discussions with Commerce Minister Piyush Goyal over a bilateral trade agreement. As noted by Ponmudi R, CEO of Enrich Money, "any progress likely to be viewed positively by markets given its potential to strengthen trade ties and support long-term economic growth."
