Indian stock markets continued their upward momentum for the third straight session on Wednesday, driven by a strong recovery in IT stocks and positive cues from Asian markets as oil prices showed slight relief.
The Nifty 50 rose 0.45% to 23,686, while the BSE Sensex gained 0.45% to reach 76,415.29 as of mid-morning trade. Gains were broad-based, with 12 out of 16 major sectors trading in the green.
Despite the recent rally, both indices are still down around 6% for the month, largely due to volatility caused by a sharp rise in crude oil prices following tensions linked to the U.S.-Israel-Iran conflict. However, oil prices eased to about $101 per barrel after Iraq and Kurdish authorities agreed to resume exports through Turkey’s Ceyhan port, offering some relief to global markets.
Market experts believe investor sentiment has improved on hopes that the Middle East conflict may not escalate further, although risks remain. Any sharp increase in oil prices towards $120–$130 per barrel could trigger fresh selling pressure.
The IT sector led the gains, with the Nifty IT Index jumping 3.7%. The rally came after brokerage firm CLSA dismissed concerns about potential disruptions from new AI technologies introduced by companies like OpenAI and Anthropic. The firm maintained a positive outlook, noting no signs of pricing pressure in contract renewals for Indian IT companies.
The IT index is now set to end a six-day losing streak, during which it had dropped 4.6%. The sector also remains in focus ahead of an expected interest rate pause by the U.S. Federal Reserve.
Meanwhile, auto stocks continued their upward trend, with the Nifty Auto Index rising 1.7%, marking its third consecutive session of gains. Overall, the market sentiment remains cautiously optimistic amid easing oil prices and global cues.
