6 hrs ago
Indian Markets End Higher Despite Oil and Geopolitical Risks
Indian stock markets finished slightly higher after falling for three days.
The Sensex and Nifty are measures that show how many large company shares are performing.
Buying near the end of trading helped lift the indexes.
HDFC Bank and Axis Bank were among the companies that attracted buyers.
However, expensive crude oil made investors cautious.
Brent crude traded above USD 100 per barrel.
Ongoing geopolitical tensions also made markets feel less confident.
Stock markets in Asia were mostly lower, while European markets were mixed.
Investors were waiting for US inflation data to understand what may happen to interest rates.
Foreign investors had sold Indian shares worth Rs 582.99 crore on Wednesday.
Sensex rose 138.36 points, or 0.19%, to close at 74,902.59.
Nifty gained 46.30 points, or 0.20%, ending at 23,477.80.
Late buying in HDFC Bank and Axis Bank helped reverse three days of losses.
Brent crude rose 1.19% to USD 102.20 per barrel amid geopolitical tensions.
Investors awaited key US inflation data for signals about future interest-rate policy.
- Who
- Indian equity investors, including domestic buyers and foreign institutional investors.
- What
- The Sensex and Nifty recovered modestly, ending a three-day losing streak.
- Where
- Indian stock exchanges, including the BSE and NSE.
- When
- Thursday; the previous trading session was Wednesday.
- Why
- Late buying in major banks supported the indexes, while crude oil above USD 100 per barrel and geopolitical tensions limited gains.
Reasons for Optimism
Reasons for Caution
Bank-led recovery
Reasons for Optimism
Late buying in HDFC Bank and Axis Bank helped the major indexes recover after three losing sessions.
Reasons for Caution
The gains were narrow, and several major stocks, including HCL Tech, Tata Steel, Trent and ITC, declined.
Oil and geopolitical risks
Reasons for Optimism
Selective buying in financial and other stocks allowed markets to finish higher despite difficult global conditions.
Reasons for Caution
Brent crude above USD 100 per barrel and persistent geopolitical tensions kept risk appetite subdued.
Interest-rate outlook
Reasons for Optimism
Investors were looking to upcoming US inflation data for information that could clarify the rate outlook.
Reasons for Caution
Uncertainty about the US rate trajectory encouraged caution, while foreign investors had sold Indian equities in the previous session.
Key facts
- Sensex close
- 74,902.59, up 138.36 points or 0.19%
- Nifty close
- 23,477.80, up 46.30 points or 0.20%
- Brent crude
- USD 102.20 per barrel, up 1.19%
- Three-day trend
- The gains ended three consecutive sessions of declines
- Key supporting stocks
- HDFC Bank and Axis Bank, along with Power Grid, UltraTech Cement, NTPC, Tech Mahindra, Bharti Airtel and Larsen & Toubro
- Notable laggards
- HCL Tech, Tata Steel, Trent and ITC
- Foreign investor activity
- Foreign Institutional Investors sold equities worth Rs 582.99 crore on Wednesday
Quotes
Hariselvan Radhakrishnan
Founder and CEO of HST Wealth, a research analyst firm
“Indian equities ended marginally higher on Wednesday, shrugging off weak global cues and Brent crude hovering near USD 102 a barrel, as selective buying in financials and oil & gas stocks offset broader caution”
telegraphindia.com
“Investors now await key US inflation data for cues on the rate trajectory.”
telegraphindia.com
Sources
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