Sensex, Nifty Rise Despite Oil Price Surge And Strait Of Hormuz Concerns

Indian equity benchmarks moved higher on Wednesday, even as rising crude oil prices and geopolitical tensions in the Gulf region weighed on sentiment.

The BSE Sensex gained around 0.52 per cent, or 400 points, to trade at 77,289.55 during early deals, touching an intraday high. The Nifty 50 also climbed 0.53 per cent, or 127.8 points, to 24,123.55.

Buying was seen across several sectors, with automobile, chemical, real estate, energy and IT stocks leading the gains.

Sectoral indices such as Nifty Auto rose 1.61 per cent, Nifty Chemicals 0.94 per cent, Nifty Realty 0.89 per cent, Nifty Oil & Gas 0.72 per cent and Nifty IT 0.57 per cent.

Some stocks, however, faced selling pressure, including Hindalco Industries, JSW Steel, Dr Reddy’s Laboratories, Tata Steel, ICICI Bank, Asian Paints and SBI Life.

Market participants remained cautious over developments in the Middle East, particularly around the Strait of Hormuz, where ongoing restrictions have raised concerns about energy supply disruptions.

Global oil prices continued their upward trend. Brent crude rose 0.63 per cent to $111.97 per barrel, while West Texas Intermediate gained 0.81 per cent to $100.74.

The rise followed reports that the United States may extend restrictions on Iranian ports, with President Donald Trump reportedly asking officials to prepare for a longer blockade targeting Iran.

Analysts also pointed to speculation around the United Arab Emirates potentially exiting the Organisation of the Petroleum Exporting Countries, which could further tighten supply in the medium term.

Global Market Cues

Global cues remain mixed. In Asia, Japan’s Nikkei slipped about 1 per cent, while Hong Kong’s Hang Seng gained 1 per cent and South Korea’s Kospi traded marginally higher.

In the US, markets ended lower overnight, with the Nasdaq dropping 0.90 per cent and the S&P 500 declining 0.5 per cent.

Experts said that despite the resilience shown by domestic equities, elevated crude prices and uncertainty in the Gulf region remain key risks for investors.

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