Indian shares rise for second day on Middle East ceasefire prospects

Indian equity benchmarks gained for a second session on Wednesday, as prospects of a Middle East ceasefire pulled oil prices lower and eased concerns around growth in the world’s third-biggest crude importer.

The Nifty 50 rose 1.72% to 23,306.45, while the BSE Sensex added 1.63% to 75,273.45.

The benchmarks have gained 3.5% in two days. They are down 7.4% so far this month, with foreign investors offloading $11.37 billion worth of shares in their biggest monthly selloff on record.

HDFC Bank, the heaviest stock on the Nifty, rose 2.3%, extending gains to the second session, after tapping external law firms to review its ex‑chairman’s abrupt exit. It pushed financial stocks up 2.35%, their biggest daily gain in seven weeks.

The lender had slumped 11.7% over the three sessions to Monday following Atanu Chakraborty’s resignation.

The broader small-caps and mid-caps added 2.6% and 2.3%, respectively, on Wednesday.

Global markets reacted positively to U.S. President Donald Trump’s comments on Tuesday that Washington was making progress toward ending the war, although Iran’s military said no talks had taken place.

Asian markets rose 1.7%, while oil hovered around $100 per barrel.

“The talks about de-escalation are definitely a relief for (Indian) markets. But it will be crucial to see how long it takes for things to normalise,” said Pankaj Pandey, head of retail research at ICICI Securities.

All 16 major sectors rose on Wednesday. Consumer durables soared 3.5% and was the biggest gainer on easing global supply concerns.

Auto stocks added 2.2%, while infrastructure behemoth Larsen & Toubro and low-cost carrier IndiGo jumped 3.8% and 3.5%, respectively.

Pandey said investors will watch for the impact of higher crude prices on corporate profitability as well as companies’ ability to undertake price hikes to offset it.

India’s equity, debt and currency markets will be closed on Thursday for a local holiday. Trading will resume on Friday.