Crude Oil Prices Cool Off: Nifty Closes at 2-Week High; 135 Stocks Hit 52-Week Highs, 176 Hit Upper Circuits

Indian equity markets ended in green  on Wednesday, with benchmark indices closing higher as easing crude oil prices and sustained buying interest in the majority of the sectors supported investor sentiment. The decline in oil prices following expectations of improved supply from major producers provided relief to markets amid ongoing global uncertainties.

The Nifty 50 opened at 23,352.15, briefly touched an intraday low of 23,349.55, and gradually recovered during the session to hit a high of 23,466.90. The index maintained a positive trajectory through most of the trading session and closed at 23,446.80, gaining 117.60 points or 0.50%. The latest closing marked the highest closing level for the Nifty 50 in nearly two weeks, reflecting improved buying interest after recent volatility.

The Sensex ended 299.17 points higher at 74,828.25, while the Bank Nifty gained 0.59%, outperforming the frontline indices. Meanwhile, India’s volatility gauge, India VIX, declined nearly 6% to around 10.3, suggesting easing concerns among market participants.

Sectoral Indices Performance on September 23: Nifty Metal Gained Over 2%

Buying interest was visible across most sectors, with nine out of 11 major sectoral indices closing in positive territory.

The Nifty Metal index emerged as the top performer, rising 2.4%, extending its recent gains. Steel Authority of India Ltd (SAIL) was among the notable gainers, rising over 6%.

In contrast, the Nifty IT index declined 0.87%, extending its recent weakness. The index touched an almost two-month low, with nine out of its 10 constituents ending the session in negative territory.

Broader Market Witnesses Strong Buying Interest

The broader market ended higher, with mid and small-cap stocks outperforming benchmark indices.

The Nifty Midcap 100 index gained 0.70%, while the Nifty Smallcap 100 index advanced 0.89%.

Market breadth remained positive, with 2,344 stocks advancing, while 1,232 stocks ended in the red. Interestingly, 176 stocks hit their upper circuit limit, while 135 stocks touched fresh 52-week highs. 

Crude Oil Prices Decline as Supply Concerns Ease

Crude oil prices remained under pressure on Wednesday, extending their decline for the sixth consecutive session. Brent crude traded below the $100 per barrel mark as concerns over supply disruptions eased following reports of Saudi Arabia resuming exports through its East-West pipeline.

Additionally, progress in US-Iran discussions reduced concerns over potential supply constraints. Market participants also tracked US crude inventory data after the American Petroleum Institute (API) reported an increase of 1.8 million barrels in crude stockpiles.

Lower crude prices provided support to Indian equities, as softer energy costs can help ease pressure on inflation and corporate margins.

Rupee Weakens

The Indian rupee declined marginally on Wednesday, weakening by 0.1% to 95.74 per dollar, tracking broader weakness across Asian currencies. The dollar strengthened as expectations of further US Federal Reserve rate hikes continued to support demand for the greenback.

The dollar index has gained over 1% since the Fed’s recent rate hike, with traders factoring in the possibility of additional tightening over the next 12 months. However, dollar selling by state-run banks and possible Reserve Bank of India (RBI) intervention helped limit the rupee’s decline. Softer crude oil prices also provided some relief to the domestic currency.

European Markets Mostly in Red Amid Cautious Sentiment

European markets traded mostly in the red on Wednesday as investors remained cautious amid global interest rate concerns and economic developments.

Germany’s DAX declined 0.55% to 25,459.21, while France’s CAC 40 slipped 0.17% to 8,140.90. Meanwhile, the UK’s FTSE 100 edged higher by 0.03% to 10,711.15.

US Futures Flat

US equity futures remained largely unchanged on Wednesday as investors evaluated interest rate expectations and global market cues.

Dow Jones futures gained 0.04% to 52,301, while S&P 500 futures advanced 0.07% to 7,837.25. Meanwhile, Nasdaq 100 futures declined marginally by 0.01% to 31,025.50.