
Indian equity markets extended their gains for the second consecutive session on Wednesday, buoyed by easing geopolitical tensions and cooling crude oil prices. The BSE Sensex surged 700 points or 0.85 per cent to close at 82,756, while the NSE Nifty gained 200 points or 0.80 per cent to settle at 25,245.
The sharp uptick was largely broad-based barring a few private lenders. The media index emerged as the top gainer, rising 1.99 per cent, while the defence sector bore the brunt of selling pressure, slipping 2 per cent. Market experts attributed the ongoing recovery to supportive global cues and improving domestic fundamentals.
"Domestic benchmarks have staged a recovery, supported by easing geopolitical tensions in the Middle East and a moderation in crude oil prices. While FIIs continue to pull out funds, positive global cues are helping sustain domestic market momentum," said Vinod Nair, Head of Research at Geojit Financial Services.
He added that large-cap stocks, particularly from the IT and auto sectors, are leading the charge, aided by a stronger US dollar and improved investor risk appetite. Domestically, a favourable monsoon forecast and signs of moderating inflation have further lifted investor sentiment.
Technically, the market remains in bullish territory, according to analysts.
"For trend-following traders, the levels of 25,000 on the Nifty and 82,000 on the Sensex are now key support zones," said Shrikant Chouhan, Head of Equity Research at Kotak Securities. "As long as the indices stay above these levels, the uptrend is likely to continue. On the upside, resistance is expected around 25,300 on the Nifty and 83,000 on the Sensex. A breakout above these levels could see further gains towards 25,500 and 83,650 respectively."
However, Chouhan cautioned that a breach below the key support levels could make the rally vulnerable in the near term.
Rupak De, Senior Technical Analyst at LKP Securities, stated, "The ceasefire in the Israel-Iran conflict has lifted sentiment among bullish traders, who are now eyeing a move in Nifty towards the 25,750 mark. The immediate resistance is seen at 25,350, and a breakout above this level could pave the way for further gains. On the downside, the 24,820–25,000 range is expected to remain a strong support zone."
Although foreign institutional investors (FIIs) remained net sellers in the previous session, strong domestic sentiment continues to buoy the market.