Sensex, Nifty End Higher As Domestic Growth Signals, Softer Crude Support Sentiment

Indian equity markets closed higher on Wednesday, with the benchmark indices gaining ground amid signs of stronger domestic growth momentum and softer crude oil prices.

The Nifty 50 rose 117.80 points, or 0.50 per cent, to settle at 23,446.80, while the BSE Sensex gained 299.17 points, or 0.40 per cent, to close at 74,828.25.

Vinod Nair, Head of Research at Geojit Investments, said the market remained positive despite intraday volatility as investors focused on improving domestic economic activity.

"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 continued to keep a risk premium in oil prices, putting pressure on the rupee amid a stronger US dollar. However, a stronger-than-expected September flash PMI boosted confidence in the resilience of economic activity.

Nair said growth remained intact without a corresponding increase in inflationary pressures.

"This constructive macro backdrop supported buying interest across the market, helping domestic equities track gains in Asian peers," he said.

Metals, Banking Stocks Lead Gains

Most sectoral indices on the NSE ended in positive territory, with metal and banking stocks leading the advance.

The Nifty Metal index gained more than 2 per cent, while Nifty FMCG rose 1.27 per cent. Nifty Pharma advanced 0.72 per cent, Nifty PSU Bank gained 0.97 per cent and Nifty Auto rose 0.25 per cent.

Nifty IT was the biggest sectoral laggard, declining more than 1 per cent, while Nifty Media fell 0.63 per cent.

Nair said healthy participation across the broader market reflected improving investor confidence, although subdued IT stocks limited the benchmark's gains at higher levels.

Brent crude prices were trading below USD 100 per barrel, providing some relief to equities despite continued geopolitical concerns.

Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, said the domestic market was witnessing a measured recovery following 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 advised investors to focus on corporate earnings, global bond yields and crude oil movements, while maintaining a staggered approach and avoiding aggressive positioning amid elevated volatility.

Gold, Silver Prices Decline

In commodities, gold prices fell 0.54 per cent to Rs 1,52,889 per 10 grams for 24-karat gold.

Silver prices also declined by more than 1 per cent to Rs 2,37,341 per kg at the time of reporting.

Asian Markets Mixed

Asian markets ended mixed on Wednesday.

Japan's Nikkei 225 gained 1.36 per cent to close at 65,018, while Taiwan's Weighted Index rose 0.74 per cent to 48,157. South Korea's KOSPI advanced 0.89 per cent to end at 7,080.

Meanwhile, Singapore's Straits Times declined 0.24 per cent to close at 5,709, while Hong Kong's Hang Seng fell 1.13 per cent to 24,807.