Indian shares rose for a third straight session on Wednesday, led by a rebound in information technology stocks and broader Asian gains as oil prices eased ahead of the U.S. Federal Reserve’s rate decision later in the day.
The Nifty 50 and BSE Sensex rose 0.83% each to 23,777.80 and 76,704.13, respectively.
They gained 2.7% and 2.9% in three sessions, partly rebounding from last week’s sharp losses, in which they confirmed a technical correction.
However, they remain roughly 5.6% lower for the month as investors navigate a surge in crude oil prices sparked by the U.S.-Israeli war on Iran.
“Momentum is improving as relative strength index (RSI) rebounds from oversold levels and volatility eases, signaling early stabilisation in markets after the correction,” said Dhupesh Dhameja, derivatives research analyst at SAMCO Securities.
READ MORE: Indian shares rise; higher crude caps gains
Oil prices, however, eased to $103 a barrel after the Iraqi government and Kurdish authorities reached a deal to resume oil exports via Turkey’s Ceyhan port.
Fourteen of the 16 major sectors rose on Wednesday. Small-caps and mid-caps gained 1.7% and 2%, respectively.
IT index added 2.8%, snapping a six-session losing streak that had wiped out 4.6%, after CLSA reiterated its positive view on the sector and downplayed near-term earnings risks from Anthropic and OpenAI’s latest AI tools.
The sector, which gets most of its revenue from the U.S., remained in focus ahead of the Federal Reserve’s widely expected rate pause later in the day.
Auto stocks gained 1.9% on Wednesday and 5.8% this week after a 10.6% drop last week.
Reliance rose 0.8% after Nomura and Investec cited strong refining tailwinds.
Larsen & Toubro rose 1.8% after Goldman Sachs and Citi highlighted a stable medium-term earnings outlook, partly rebounding from a steep drop in the last three weeks.
Comments
Comments are closed for this article.