Brent crude jumped 3.8% as Middle East supply fears returned. Indian equities rallied on IT gains and FII inflows. Fed decision later today is the next catalyst for emerging-market assets.
Brent crude jumped 3.79% to $87.28 a barrel Wednesday as Middle East supply fears returned, adding to a session where Indian equities posted their best single-day gain in weeks.
The Sensex rose 888.68 points, or 1.16%, to 77,654.60. The Nifty climbed 264.85 points, or 1.10%, to 24,250.20. Hindustan Unilever surged 4.70% and Infosys jumped 4.50%. Trent, Larsen & Toubro, Tata Steel, Bharti Airtel, Tata Consultancy Services, HCL Tech and HDFC Bank also gained. Adani Ports, Mahindra & Mahindra, Power Grid, Bharat Electronics and NTPC fell.
Foreign institutional investors turned net buyers Tuesday, purchasing equities worth Rs 755.33 crore, exchange data showed. That followed a period of FII selling that had weighed on sentiment.
"Indian equity markets ended higher ahead of the US Federal Reserve's policy decision later today, with resilient domestic fundamentals outweighing weak global cues," said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm. Strong corporate earnings and sustained buying in information technology stocks helped support sentiment, he added. A firmer rupee also contributed.
The oil rally complicates the picture for India, a net crude importer. Higher energy costs feed into inflation and widen the current account deficit, potentially limiting how much the Reserve Bank of India can ease policy this year. The central bank next meets in August.
Asian markets were mixed. South Korea's KOSPI fell 5.98%. Japan's Nikkei 225 also ended lower. Shanghai's SSE Composite and Hong Kong's Hang Seng closed higher.
Among the stocks in focus, UL carries an Alpha Score of 62, labeled Moderate. HDB scores 36, labeled Mixed, and INFY scores 57, also Moderate. The scores reflect the divergence in sector performance.
The Fed decision due later Wednesday will set the tone for emerging-market assets. A hawkish hold would strengthen the dollar, pressuring the rupee and potentially reversing some of Wednesday's FII buying. A dovish tilt would reinforce the risk-on move.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.