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Indian equity markets closed higher on Wednesday, with the Nifty 50 gaining 117.80 points, or 0.50 per cent, to close at 23,446.80, while the BSE Sensex rose 299.17 points, or 0.40 per cent, to close at 74,828.25, as signs of stronger domestic growth momentum and softer crude prices supported investor sentiment.
Vinod Nair, Head of Research, Geojit Investments, said Indian equities ended higher despite intraday volatility as markets focused on signs of strengthening domestic growth momentum. "Indian equities ended higher despite intraday volatility, as markets shrugged off an intraday surge in crude and focused on signs of strengthening domestic growth momentum," Nair said. He said geopolitical developments at the UN General Assembly kept a risk premium embedded in oil prices, which weighed on the INR amid a firmer US dollar. However, a stronger-than-expected September flash PMI reinforced confidence in the resilience of economic activity, Nair said, adding that growth remained intact without a corresponding build-up in inflationary pressures. "This constructive macro backdrop supported buying interest across the market, helping domestic equities track gains in Asian peers," he said. Sectorally, metals and banking stocks led the advance, while healthy participation in the broader market reflected improving investor confidence. IT stocks, however, remained subdued, limiting the benchmark's upside at higher levels, Nair said. On the NSE, almost all sectoral indices closed in positive territory. Nifty Metal gained more than 2 per cent, while Nifty FMCG rose 1.27 per cent. Nifty Pharma gained 0.72 per cent, Nifty PSU Bank rose 0.97 per cent and Nifty Auto advanced 0.25 per cent. Nifty IT was the major sectoral laggard, falling more than 1 per cent, while Nifty Media declined 0.63 per cent. Brent crude oil prices were trading below USD 100 per barrel, providing some relief to the market despite geopolitical concerns. Vikram Kasat, Chief Business Officer Advisory and Dealing at PL Capital, said Indian equities were witnessing a measured recovery after the previous session's correction. "The early gains reflect improving global sentiment, softer crude prices and easing concerns around US-Iran tensions, although sustained FII selling remains a key overhang," Kasat said. He added that investors should focus on earnings, global yields and crude movements while maintaining a staggered approach and avoiding aggressive positioning amid elevated volatility. In commodities, gold prices declined by 0.54 per cent to close at Rs 1,52,889/10 gram for 24 karats, while silver prices fell by more than 1 per cent to Rs 2,37,341/kg at the time of reporting. Asian markets were mixed. Japan's Nikkei 225 index gained 1.36 per cent to close at 65,018, while Taiwan's Weighted Index rose 0.74 per cent to close at 48,157. South Korea's KOSPI index gained 0.89 per cent to close at 7,080. On the other hand, Singapore's Straits Times declined 0.24 per cent to close at 5,709, while Hong Kong's Hang Seng index fell 1.13 per cent to close at 24,807. (ANI)
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