Sensex Jumps 444 Points; Oil Drop, Trade Deal Hopes Drive Rally

Indian equities ended a two-day losing streak on Wednesday. The BSE Sensex rose 443.97 points, or 0.58%, to 76,922.64. The Nifty 50 added 140.10 points, or 0.59%, closing at 24,005.85. Intraday, the Sensex touched 77,110.08 before paring gains.

Two factors drove the reversal. Brent crude fell 1.07% to $72.17 a barrel, extending a slide that has taken some pressure off India's import bill. Renewed optimism over a potential US-India trade agreement also lifted sentiment.

The oil decline directly benefits India, the world's third-largest crude importer. Lower input costs improve margins for consumer goods companies, refiners, and transportation firms. That helps explain why domestic-facing stocks led the rally. Hindustan Unilever, Asian Paints, Adani Ports, Mahindra & Mahindra, and State Bank of India were among the top Sensex gainers.

Export-heavy IT stocks lagged. HCL Tech, Tech Mahindra, TCS, Tata Steel, and Infosys ended lower. The rotation suggests investors are betting on domestic demand recovery rather than global tech spending, traders said.

Vinod Nair, head of research at Geojit Investments, said the market entered the second half of the calendar year on a more optimistic footing. He cited the easing of several challenges, including the anticipated US-India trade agreement and reduced Middle East tensions. Benign oil prices also supported sentiment, he added.

Foreign institutional investors sold Rs 2,556.75 crore worth of equities on Tuesday, exchange data showed. That selling did not resume at the same intensity on Wednesday, traders said. The lighter FII selling helped the recovery.

Asian markets were mixed. Japan's Nikkei 225 and Shanghai's SSE Composite closed higher. South Korea's Kospi ended lower. Hong Kong was closed. European markets were mostly lower in early trade. US markets ended Tuesday in positive territory.

Unilever (UL) and Infosys (INFY) both carry Alpha Scores of 57, indicating moderate momentum. Wednesday's rotation favored the consumer giant over the IT firm, reflecting the broader market shift toward domestic cyclicals.

The weekly US crude inventory report due Thursday will provide the next test for oil prices, which have been a key driver of the rally. On Tuesday, the Sensex had fallen 249.70 points to 76,478.67 and the Nifty dropped 80.50 points to 23,865.75.