Mumbai: Stock market benchmark indices Sensex and Nifty climbed in early trade on Wednesday following a decline in crude oil prices and foreign fund inflows.
Investors are also awaiting the RBI monetary policy decision to be announced shortly.
The 30-share BSE Sensex climbed 397.59 points to 78,826.54 in early trade. The 50-share NSE Nifty went up by 62.7 points to 24,677.60.
The Nifty 50 settled at 24,614.90, down 159 points or 0.64 per cent, while the Sensex fell 210 points. The Nifty Midcap 100 declined 0.3 per cent, though the Nifty Smallcap 100 managed a marginal gain of 0.2 per cent. Market breadth was slightly negative, with the BSE advance-decline ratio at 0.99.
“Markets witnessed profit-taking on Tuesday after Monday’s sharp rally, with benchmark indices ending lower amid weakness in heavyweight stocks and caution surrounding the new closing auction mechanism,” said Ajit Mishra, SVP Research at Religare Broking.
Selling pressure was broad-based. Realty, Oil & Gas, FMCG, and IT were the worst-performing sectors, while Media and Metal were the only sectoral indices to close in the green. Among Nifty 50 stocks, Apollo Hospitals, Hindalco, and Trent led gains, while Grasim, HDFC Life, and Bajaj Auto were the top laggards.
The government’s two-day Offer for Sale in LIC kept markets on edge. The government is looking to offload up to a 6.5 per cent stake at a floor price of Rs. 382 per share, a move that could raise nearly Rs. 31,000 crore and bring its holding down to 90 per cent, in line with SEBI’s public shareholding norms. LIC’s stock fell 7-8 per cent as it adjusted toward the offer price, though the issue drew healthy interest from institutional investors.
On the earnings front, Pidilite Industries reported a 30 per cent year-on-year jump in net profit to Rs. 872 crore for Q1 FY27, with revenue rising 21 per cent to Rs. 4,551.5 crore. Auto components maker Uno Minda posted revenue of Rs. 5,342 crore and net profit of Rs. 315.5 crore for the quarter.
Brent crude rebounded more than 2 per cent to above $86 per barrel, and WTI climbed to $82.3, as uncertainty over US-Iran diplomatic talks persisted. This followed a steep 7 per cent selloff on Monday after Washington shelved a planned military strike on Iran. Spot gold held steady near $4,050 per ounce, while silver gained about 1 per cent to $58.7.
The Indian rupee depreciated 4 paise to close at 95.38 against the dollar, pressured by rising crude prices and a firmer greenback, in line with weakness seen across Asian currencies.
Markets are now squarely focused on the RBI’s Monetary Policy Committee announcement, expected in the early hours of Wednesday’s trading session. While a rate cut is not widely anticipated, the tone of the central bank’s commentary on inflation and growth will be closely watched. Earnings from Power Grid, Aurobindo Pharma, and Cummins India, along with US jobs data including Friday’s nonfarm payrolls report, will also set the tone for market direction in the days ahead.
