Wednesday saw advances in Indian shares, driven by energy firms, as oil prices declined. However, gains were limited by a decline in heavily weighted financials following a recent increase.
Analysts at Centrum Institutional Research stated that “moderation in U.S. bond yields, positive earnings, and a drop in crude oil prices are positive for the markets.”
Energy and oil and gas had increases of 0.5% and 1%, respectively, while ten of the thirteen major industries saw increases.
Bharat Petroleum Corporation was the biggest gainer among the Nifty 50, up 3%.
After recording advances in each of the previous four sessions and adding more than 2%, high weightage financials had a 0.2% decrease.
With losses ranging from 0.3% to 0.8%, ICICI Bank, SBI Life Insurance, Bajaj Finance, and Kotak Mahindra Bank were among the top Nifty 50 losers.
Blue-chip stocks underperformed small- and mid-caps, which gained more than 0.75% apiece.
Overnight, Wall Street stocks increased, while U.S. Treasury rates decreased as a result of remarks made by many Fed members suggesting that the rate-hiking cycle may be nearing its conclusion.
The Nasdaq Composite and S&P 500 stock indices had their longest winning runs in the previous two years. Asian markets remained stagnant.
Investors are watching for clues about the Federal Reserve’s rate outlook from Chair Powell’s remarks on Wednesday.
Because of worries about declining demand in China and the US, Brent oil futures were trading close to a three-month low.
Apollo Tyres saw a 6% increase in individual stock prices after exceeding expectations for second-quarter earnings on the back of increased vehicle sales.
After reporting a six-fold increase in net profit in the September quarter, Prestige Estate Projects saw a 5% increase, setting a new record.