Equity benchmark indices extended their winning streak to a fourth consecutive session on Wednesday, marking their longest rally in two months, as easing crude oil prices and optimism around the proposed US-Iran peace framework boosted investor sentiment.

According to Vinod Nair, Head of Research at Geojit Investments, the market’s upward momentum was supported by softer bond yields, a firmer rupee and continued weakness in crude oil prices. He said easing geopolitical tensions around the Strait of Hormuz have kept crude prices under pressure, helping maintain positive investor sentiment despite mixed global cues ahead of the US Federal Reserve’s policy decision.

The BSE Sensex settled 347.14 points, or 0.45 per cent, higher at 77,155.62 after touching an intraday high of 77,218.99. The Nifty 50 advanced 96.55 points, or 0.40 per cent, to close at 24,085.70 after hitting a high of 24,108.20. Both the benchmarks soared 4-4.5 per cent in the last four sessions.

Bank Nifty also gained 0.50 per cent in today’s session to end at 57,585.05.

Vikram Kasat, Head Advisory at PL Capital, noted that Brent crude remaining below $78 per barrel has significantly improved India’s near-term inflation outlook, supported corporate margins and strengthened macroeconomic stability. Kasat added that investors remain focused on the outcome of the Federal Reserve’s first policy meeting under Chair Kevin Warsh.

Broader markets outperform

Broader markets outperformed the benchmark indices, with the midcap index rising 0.52 per cent and the smallcap index gaining 0.79 per cent. Volatility index declined 1 per cent to 13.19.

Ponmudi R, CEO of Enrich Money, said, “reflecting the improvement in investor confidence, India VIX declined to a three-month low, signalling a significant reduction in near-term uncertainty and risk aversion.”

Market breadth remained positive. Of the 4,443 stocks traded on the BSE, 2,404 advanced, 1,876 declined and 163 remained unchanged. As many as 133 stocks touched their 52-week highs, while 56 hit 52-week lows.

Defence, PSU banks and IT lead sectoral gains

Sectoral performance remained mixed, with defence, consumer durables, PSU banks and metal stocks emerging as the top performers, gaining 1-4 per cent.

Defence stocks rallied after India recorded its highest-ever defence production and exports in FY26.

IT shares also advanced 0.85 per cent ahead of the Federal Reserve’s policy announcement, with the Nifty IT index reclaiming the 29,000 mark during intraday trade.

On the other hand, auto, realty, pharma and healthcare indices ended in the red.

Trent, BEL lead Nifty 50 gainers

Among Nifty 50 stocks, Trent, Bharat Electronics, Hindalco and Eternal led the gainers. Tata Motors Passenger Vehicles was the biggest laggard despite Jaguar Land Rover projecting double-digit medium-term revenue growth. Cipla, Bajaj Finserv, ONGC and Axis Bank were among the other major losers.

In the banking space, Yes Bank, Bank of Baroda, Union Bank of India, Canara Bank and State Bank of India led gains, while Axis Bank and Kotak Mahindra Bank declined.

Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, emphasised, banking sector remains well-positioned, with banking system credit growth at a robust 17.6 per cent, supported by broad-based demand across corporate, retail and MSME segments. Improving asset quality, healthy loan growth and a favourable earnings outlook are expected to support the sector, with small and mid-sized banks appearing relatively better positioned for growth.

Among midcaps, Bharat Dynamics, Cochin Shipyard, Garden Reach Vessels & Engineers, Yes Bank and Dixon Technologies rose 4-6 per cent. BSE Ltd, Colgate-Palmolive India and Dabur India fell 2-4 per cent.

In the smallcap segment, IDBI Bank, Data Patterns, Garden Reach, Wockhardt and Five-Star Business Finance surged 5-17 per cent, while Aarti Industries, MRPL, Afcons Infrastructure and City Union Bank declined up to 3.5 per cent.

US Fed guidance in focus

Global markets remained cautious ahead of the US Federal Reserve’s policy decision.

Among Asian markets, South Korea’s KOSPI, Japan’s Nikkei 225 and China’s Shanghai Composite closed higher, while Hong Kong’s Hang Seng declined.

European markets were trading mixed.

Wall Street ended mixed overnight, with the Dow Jones Industrial Average closing higher after touching a record intraday high, while the Nasdaq fell 1.2 per cent and the S&P 500 declined 0.6 per cent.

On Tuesday, FIIs offloaded equities worth ₹749.18 crore on Tuesday, exchange data show.

In the previous session, Sensex jumped 544.15 points to settle at 76,808.48. The Nifty climbed 135.25 points to end at 23,989.15.

Markets widely expect the Fed to keep interest rates unchanged at its first meeting under Chair Kevin Warsh. Investors will closely watch the central bank’s commentary for signals on the future policy path.

Ponmudi R, CEO of Enrich Money, said recent inflation readings in the US have remained elevated, partly due to the earlier surge in energy prices during the conflict period, making the Fed’s policy guidance a key variable for global markets.

Meanwhile, concerns persist over the progress of the southwest monsoon amid El Niño-related worries, with investors continuing to monitor rainfall patterns and their potential impact on inflation.

More Like This

Published on June 17, 2026