Sensex, Nifty rise for 4th session on easing crude ahead of US Fed outcome; defence, bank stocks shine

Equity benchmark indices extended their winning streak to a fourth consecutive session on Wednesday, marking their longest rally in two months, as easing crude oil prices and optimism around the proposed US-Iran peace framework boosted investor sentiment.

According to Vinod Nair, Head of Research at Geojit Investments, the market’s upward momentum was supported by softer bond yields, a firmer rupee and continued weakness in crude oil prices. He said easing geopolitical tensions around the Strait of Hormuz have kept crude prices under pressure, helping maintain positive investor sentiment despite mixed global cues ahead of the US Federal Reserve’s policy decision.

The BSE Sensex settled 347.14 points, or 0.45 per cent, higher at 77,155.62 after touching an intraday high of 77,218.99. The Nifty 50 advanced 96.55 points, or 0.40 per cent, to close at 24,085.70 after hitting a high of 24,108.20. Both the benchmarks soared 4-4.5 per cent in the last four sessions.

Vikram Kasat, Head Advisory at PL Capital, noted that Brent crude remaining below $78 per barrel has significantly improved India’s near-term inflation outlook, supported corporate margins and strengthened macroeconomic stability. Kasat added that investors remain focused on the outcome of the Federal Reserve’s first policy meeting under Chair Kevin Warsh.

Broader markets outperformed the benchmark indices, with the midcap index rising 0.52 per cent and the smallcap index gaining 0.79 per cent. Volatility index declined 1 per cent to 13.19.

Ponmudi R, CEO of Enrich Money, said, “reflecting the improvement in investor confidence, India VIX declined to a three-month low, signalling a significant reduction in near-term uncertainty and risk aversion.”

Market breadth remained positive. Of the 4,443 stocks traded on the BSE, 2,404 advanced, 1,876 declined and 163 remained unchanged. As many as 133 stocks touched their 52-week highs, while 56 hit 52-week lows.

Sectoral performance remained mixed, with defence, consumer durables, PSU banks and metal stocks emerging as the top performers, gaining 1-4 per cent.

Defence stocks rallied after India recorded its highest-ever defence production and exports in FY26.

IT shares also advanced 0.85 per cent ahead of the Federal Reserve’s policy announcement, with the Nifty IT index reclaiming the 29,000 mark during intraday trade.

On the other hand, auto, realty, pharma and healthcare indices ended in the red.

Among Nifty 50 stocks, Trent, Bharat Electronics, Hindalco and Eternal led the gainers. Tata Motors Passenger Vehicles was the biggest laggard despite Jaguar Land Rover projecting double-digit medium-term revenue growth. Cipla, Bajaj Finserv, ONGC and Axis Bank were among the other major losers.