Indian equity benchmarks ended higher on Wednesday, although they gave up a significant portion of their gains due to a sharp increase in global crude oil prices impacting investor confidence. The Nifty finished at 24,177.65, up by 0.76%, or 181.95 points, while the Sensex concluded at 77,496.36, marking a gain of 0.79%, or 609.45 points.
Experts noted that 24,200 stands as the primary resistance level on the upside. Conversely, breaching the 24,000–24,100 support range could weaken the market structure in the short term, with 23,900 serving as the subsequent support level. Market sentiment was affected by Brent crude prices surging over 3% to $114.60 per barrel on the Intercontinental Exchange.
The spike in oil prices was triggered by stalled negotiations between the United States and Iran, leading to concerns about potential disruptions in the oil supply chain. Furthermore, the United Arab Emirates declared its exit from the Organization of Petroleum Exporting Countries (OPEC) effective May 1, adding to the volatility in global energy markets.
Despite a late-session retreat, key players like ITC, Tech Mahindra, and Maruti Suzuki India supported the indices, enabling them to end positively. While the broader markets showed a mixed trend, with the Nifty MidCap index slightly down by 0.07%, the Nifty SmallCap index outperformed, rising by 0.65%.
Sector-wise, the Nifty FMCG and Nifty Realty indices led the gains, reflecting increased interest in consumer goods and real estate stocks. Conversely, the Nifty Construction Durable and Nifty Media indices lagged, affected by sector-specific challenges and cautious market sentiment.
Analysts cautioned that despite the positive close, the surge in crude prices and geopolitical uncertainties pose short-term risks, potentially limiting further market upside. Market movements are expected to be influenced by the US Fed policy decision, with ongoing global developments and sector-specific earnings trends likely to keep sentiment volatile.
