PSU banks and consumer durables lead the session as crude oil retreats and US-Iran optimism lifts sentiment. Nifty eyes 24,200 resistance ahead of the Fed decision.
Benchmark indices held steady in afternoon trade Wednesday, with the BSE Sensex up 205 points at 77,014 and the Nifty 50 adding 51 points to 24,040. The session's gains came as a sharp drop in crude oil prices and optimism around a proposed US-Iran peace framework eased concerns over India's import bill and inflation.
Broader markets outperformed the frontline indices. The smallcap index rose 0.8%, while the midcap index gained 0.3%. Market breadth stayed positive: of the 4,187 stocks traded on the BSE, 2,322 advanced, 1,676 declined, and 189 were unchanged.
The market's anchor was a continued outperformance in financials, particularly PSU bank stocks. All counters in the PSU banking space traded in positive territory, with UCO Bank, Central Bank, and IOB leading gainers. The consumer durables sector also advanced 1-2%. On the other side, realty, pharma, healthcare, and auto stocks faced selling pressure.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said markets ranged after a positive start. He sees Nifty immediate support at 23,940-23,960 and resistance at 24,190-24,210. A break below 23,940 could pull the index toward 23,800-23,750, he said, while a decisive move above 24,210 may extend the rally toward 24,400. For the Sensex, Shah pegged support at 76,700 and resistance at 77,500.
The Nifty IT index briefly crossed 29,000 before turning flat as investors awaited the outcome of the US Federal Reserve policy meeting later in the day. The index has risen 4.3% in three sessions, with Infosys, Tech Mahindra, Wipro, and TCS leading the gains.
India VIX remained largely unchanged at 13.45, suggesting no panic in options pricing.
Among Nifty 50 constituents, Trent, Eternal, BEL, Tech Mahindra, and Tata Steel were top gainers. Tata Motors Passenger Vehicles, Cipla, Bajaj Finserv, ONGC, and Axis Bank lagged.
In the midcap space, Yes Bank, Blue Star, KEI Industries, Dixon Technologies, and BDL surged 4-5%. BSE Ltd, Colgate-Palmolive India, Fortis Healthcare, and MCX declined 2-3%. Among smallcaps, IDBI Bank, Brigade Enterprises, Wockhardt, Data Patterns, and PG Electroplast rallied 3-18%.
A total of 108 stocks touched 52-week highs and 42 hit fresh lows. Another 173 stocks locked in the upper circuit and 118 in the lower circuit.
The market's foundation this week has been the sharp retreat in crude oil prices, which lowers India's import bill and supports consumption-driven sectors. The proposed US-Iran framework added to the sentiment shift, reducing the geopolitical risk premium that drove energy prices higher in prior weeks. With the Fed decision ahead, the next leg of the move will depend on how global rates and the dollar react.
Betsy George, Mumbai
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.