- Indian benchmarks Sensex, Nifty registered significant gains on Wednesday.
- Softer crude oil, FII net buying supported market rebound.
- US, India close to bilateral trade deal conclusion.
The Indian benchmark indices rose on Wednesday as the Sensex gained 790 points to settle at 76,991 and the Nifty increased 197 points to close trade at 24,021 at 3:30 PM.
Previously, during the early morning session, the Sensex climbed 187 points to open trade at 76,388 and the Nifty rose 57 points to open at 23,878 at 9:15 AM.
Indian equity markets may find support from softer crude oil prices and signs that foreign investor selling is slowing, even after the benchmark indices ended sharply lower in the previous session.
Brent crude, the global oil benchmark, was trading 1.02 per cent lower at USD 76.29 per barrel.
Lower Crude Eases Pressure On India
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the fall in Brent crude below USD 77 has reduced macroeconomic headwinds for India.
“The crash in Brent crude to below USD 77 has removed the macro headwinds for India. Rupee has stabilised. FII selling appears to have tapered off. This is positive for the market,” he said.
FIIs Turn Net Buyers
Foreign Institutional Investors (FIIs) bought equities worth Rs 17.86 crore on Tuesday, according to exchange data.
India-US Trade Deal Talks In Focus
A senior US official said the United States and India are “very, very close” to concluding a historic bilateral trade deal that would open the 1.4 billion-strong Indian market to American goods on reciprocal and mutually beneficial terms.
Mixed Cues From Asian Markets
Asian markets traded mixed. South Korea’s Kospi and Hong Kong’s Hang Seng index were quoted higher, while Japan’s Nikkei 225 index and Shanghai’s SSE Composite index traded lower.
South Korea’s Kospi and Hong Kong’s Hang Seng index were higher, while Japan’s Nikkei 225 and China’s SSE Composite traded lower.
US Stocks End Sharply Lower
US markets ended sharply lower on Tuesday. The Nasdaq Composite fell 2.21 per cent, while the S&P 500 declined 1.44 per cent.
Benchmarks Tumble In Previous Session
On Tuesday, the Sensex fell 893.39 points, or 1.16 per cent, to settle at 76,200.68.
The Nifty declined 278.80 points, or 1.16 per cent, to close at 23,824.10.
