Sensex closes 299 points higher, Nifty nears 23,450; ITC up 2%

Benchmark indices closed higher on Wednesday as crude oil prices remained below the $100-a-barrel mark, easing some pressure on an oil-importing economy like India. Gains in metal, banking and broader-market stocks supported the benchmarks, while continued weakness in IT stocks capped the upside.

The Sensex gained 299.17 points, or 0.40%, to close at 74,828.25, while the Nifty 50 rose 117.80 points, or 0.50%, to 23,446.80. The Sensex opened at 74,648.32, while the Nifty opened at 23,352.15.

The market remained volatile through the session as investors tracked developments in the Middle East. US President Donald Trump warned Iran of further military action but also said his envoys had held what he described as productive talks with Iranian mediators.

OIL PRICES REMAIN BELOW $100

Crude oil prices remained a key positive for Indian equities.

Brent crude was trading at $98.85 a barrel, down 0.40%, while WTI crude stood at $89.55, lower by 1.07%, according to the market data.

Brent has remained below the $100 mark as investors assessed the possibility of diplomatic progress between the US and Iran. Saudi Arabia's restoration of supplies through a key Red Sea pipeline also helped ease concerns over oil availability.

For India, lower crude prices can provide some relief on the import bill and inflation, while also reducing pressure on corporate costs.

Vinod Nair, Head of Research, Geojit Investments Limited, said, "Indian equities ended higher despite intraday volatility, as markets shrugged off an intraday surge in crude and focused on signs of strengthening domestic growth momentum."

He added that geopolitical developments at the UN General Assembly continued to keep a risk premium embedded in oil prices, while also weighing on the rupee amid a firmer US dollar.

METAL STOCKS LEAD THE RALLY

Metal stocks were among the biggest drivers of Wednesday's gains.

The Nifty Metal index jumped 2.40%, tracking gains in global metal prices amid supply concerns and resilient demand, particularly from China.

Tata Steel was the top Sensex gainer, rising 3.28%. Bajaj Finance gained 3.07%, while ITC rose 1.77%.

UltraTech Cement advanced 1.73%, Power Grid gained 1.65% and Larsen & Toubro rose 1.50%.

Bajaj Finserv gained 1.15%, Sun Pharma rose 1.14%, Adani Ports advanced 1.04% and Hindustan Unilever gained 0.83%.

Bharti Airtel and SBI also ended higher, while Reliance Industries gained 0.41%.

Banking stocks also contributed to the market's advance.

Bajaj Finance jumped 3.07% after UBS upgraded its rating and raised its price target, citing an improved earnings outlook.

The broader financial sector also gained, with the Nifty Financial Services 25/50 index rising 0.51%.

The Nifty PSU Bank index gained 1.14%, while Nifty Private Bank rose 0.28%.

Market commentary also pointed to improving asset-quality trends. UBS said CRIF Bureau's August early-delinquency data showed asset quality was stable to improving across most retail loan categories.

The broader market performed strongly on Wednesday.

The Nifty 100 gained 0.58%, while the Nifty 200 rose 0.61% and the Nifty 500 advanced 0.62%.

The Nifty Midcap 50 gained 0.57%, while the Nifty Midcap 100 rose 0.70%. The Nifty Smallcap 100 was the strongest among the broad-market indices, gaining 0.89%.

India VIX fell 6.41% to 10.29, indicating lower expectations of near-term market volatility.

The broader market's performance also reflected stronger participation beyond the benchmark-heavy stocks.

Fifteen of the 16 major sectoral indices ended higher on Wednesday.

Nifty Metal was the biggest gainer, rising 2.40%. Nifty FMCG gained 1.32%, while PSU Bank advanced 1.14% and Realty rose 1.10%.

Nifty Pharma gained 0.90%, Financial Services 25/50 rose 0.51% and Private Bank added 0.28%.

Nifty Auto gained 0.26%.

Nifty IT was the only major sectoral index to end lower, declining 0.87%. Nifty Media also fell 0.50% in the market data, while the remaining sectors were largely positive.

IT stocks continued to lag the broader market amid concerns over demand and earnings.

The Nifty IT index fell 0.87%.

HCLTech was the biggest loser among the Sensex stocks, declining 1.10%. Infosys fell 1.03%, TCS declined 0.95% and Tech Mahindra lost 0.32%.

Titan also fell 0.60%, while M&M declined 0.49%.

The weakness in IT limited the gains in the benchmark indices even as metal and banking stocks rallied.

DOMESTIC GROWTH SUPPORTS SENTIMENT

Nair said a stronger-than-expected September flash PMI had reinforced confidence in the resilience of economic activity, indicating that growth remained intact without a corresponding build-up in inflationary pressures.

"This constructive macro backdrop supported buying interest across the market, helping domestic equities track gains in Asian peers," he said.

He added that metals and banking stocks led the advance, while healthy participation in the broader market reflected improving investor confidence.

"IT stocks, however, remained subdued, limiting the benchmark's upside at higher levels," Nair said.

For Indian equities, the combination of crude remaining below $100, improving domestic growth signals and broader-market buying provided support on Wednesday. However, geopolitical uncertainty and weakness in IT stocks continued to keep gains in check.

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