Nifty Closes Above 24,000, Sensex Rises 444 Points on Trade Deal Hopes and Softer Crude

Indian benchmark indices extended their gains on Wednesday, with the Nifty 50 reclaiming the 24,000 level and the Sensex advancing nearly 444 points. Positive sentiment was driven by expectations of an India-US trade agreement, easing tensions in the Middle East, and declining crude oil prices, which boosted investor confidence across sectors.

Broad-based rally driven by improving sentiment

The Nifty 50 settled at 24,005.85, gaining 140.10 points or 0.59 per cent, while the BSE Sensex rose 443.97 points, or 0.58 per cent, to close at 76,922.64.

Market participants cited improving domestic and global cues as key factors behind the rally. According to experts, easing geopolitical concerns and supportive commodity prices helped strengthen risk appetite among investors.

Vinod Nair, Head of Research at Geojit Investments, said, "The domestic markets entered H2CY26 on an optimistic footing as multiple headwinds began to abate, with the anticipated US-India trade agreement, easing Middle East tensions, and benign oil prices emerging as the key drivers of positive sentiment. The recovery was broad-based with an outperformance of large caps due to a favourable valuation and an expectation of a partial reversal of FPI sentiment after the last two years of outflows".

He further added, "While near-term sentiment remains constructive, markets are likely to stay data-dependent, with investors balancing improving domestic fundamentals against evolving global macroeconomic and geopolitical developments."

The gains were widespread, with FMCG, banking and media stocks leading the advance. However, information technology shares remained under pressure.

FMCG shines while IT drags

Among NSE sectoral indices, Nifty FMCG emerged as the top performer, climbing more than 2 per cent. Nifty Media gained 1.80 per cent, Nifty PSU Bank rose 0.89 per cent and Nifty Private Bank advanced 0.8 per cent.

In contrast, Nifty IT declined more than 2 per cent, while Nifty Metal slipped over 1 per cent.

Within the Nifty 50 pack, Eternal surged around 5 per cent to emerge among the top gainers. Adani Enterprises, Nestle India, Asian Paints and Hindustan Unilever also posted strong gains.

On the downside, HCL Technologies fell more than 3 per cent. Tech Mahindra and Tata Consultancy Services (TCS) also ended over 2 per cent lower.

Crude, gold and currency trends remain in focus

Commodity prices provided additional support to equities. Brent crude oil declined 1.15 per cent to trade at USD 72.10 per barrel at the time of reporting, easing concerns over inflation and import costs.

Meanwhile, gold prices fell 0.57 per cent to Rs 1,41,741 per 10 grams for 24-carat gold, while silver prices dropped more than 2 per cent to Rs 2,22,190 per kilogram.

On the currency front, the Indian rupee weakened for the third consecutive session amid a stronger US dollar and weakness across Asian currencies.

Dilip Parmar, Research Analyst at HDFC Securities, said, "The Indian rupee declined for a third consecutive session, pressured by short covering and a strengthening US dollar against major currencies. Additional weakness across Asian currencies further weighed on the rupee. Market sentiment has turned negative following the breach of the 95 level. In the near term, spot USDINR is expected to face resistance at 95.80, while support is seen at 94.60."

Across Asia, Japan's Nikkei 225 gained 0.92 per cent and Taiwan's weighted index rose 1.90 per cent. However, Singapore's Straits Times slipped 0.18 per cent, Hong Kong's Hang Seng index fell 0.64 per cent and South Korea's KOSPI declined 2.08 per cent.

(With inputs from ANI)