Indian benchmark equity indices staged a strong recovery during trade, with the BSE Sensex climbing more than 200 points from its intraday low and the NSE Nifty holding above the key 24,100 mark. The rebound was driven by easing crude oil prices, improving global sentiment and optimism surrounding the U.S. Federal Reserve's policy outlook.
After a subdued start, markets regained momentum as investors responded positively to the sharp decline in global crude prices. Brent crude slipped below the $80-per-barrel mark, easing concerns over India's import bill and inflation outlook. Market participants said lower energy prices have strengthened expectations of improved macroeconomic stability for the country.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, "Brent crude has declined sharply, removing a major macro concern for India." He noted that lower oil prices could help improve external balances and support investor confidence.
Investor sentiment also received support from expectations that the U.S. Federal Reserve would maintain interest rates at current levels. Market analysts said a stable rate environment could provide relief to global equities and support capital flows into emerging markets, including India. Technology stocks, which are particularly sensitive to developments in the U.S. economy, remained in focus ahead of the Fed's policy announcement.
Sectorally, gains were broad-based, with consumer durable, metal and banking stocks contributing to the recovery. Shares of major lenders and index heavyweights helped lift the benchmarks, while select healthcare and pharmaceutical counters witnessed profit-booking.
Analysts said technical indicators continue to favour the bulls as long as the Nifty remains above the 24,000 level. According to market experts, a sustained move beyond immediate resistance levels could pave the way for further upside in the near term.
Foreign institutional investor activity also remained under close watch. While overseas investors have continued to be net sellers in recent sessions, analysts pointed to a moderation in outflows, aided by a strengthening rupee and improving market conditions. Some market participants believe a continued decline in crude prices could further stabilise foreign investment flows.
The recovery extended the recent positive momentum on Dalal Street, with benchmark indices building on gains recorded over the past few sessions. Analysts said global developments, crude oil trends and central bank commentary will remain key factors influencing market direction in the coming days.
