Sensex Finishes Marginally Up

India’s BSE Sensex pared early gains to close marginally up at 73,983 on Wednesday, extending gains from the prior day, amid some caution due to fresh tensions between the US and Iran. At the same time, foreign institutional investor outflows and concerns around elevated tech valuations persisted. Continued strong buying in heavyweight banks, as well as FMGC stocks, helped counter a broader selloff. Axis Bank, Kotak Mahindra Bank, ICICI Bank and HDFC Bank posted gains between 1.2%-1.7% on the RBI's concessional forex swap facility. Hindustan Unilever and ITC also advanced firmly, rising 1.7% and 1.3%, respectively. On the flip side, the biggest laggards included Eternal (-2.5%), Tata Steel (-2%), Titan (-1.5%) and Mahindra & Mahindra (-1.3%). The tech sector also stayed on the back foot, with HCL Tech (-1.2%), Infosys (-0.9%), and Tech Mahindra (-0.4%) falling.

The SENSEX Index gained 64 points or 0.09 percent on Wednesday to close at 73983 points. Gains were led by Nestle India (1.95%), Hindustan Unilever (1.85%) and Axis Bank (1.67%). Biggest losers were Indusind Bank (-4.18%), Infosys (-3.08%) and Tata Steel (-2.18%).

India’s BSE Sensex rose about 0.7% to 74,402 at the open on Wednesday, extending gains from the previous session despite mounting geopolitical tensions in the Middle East that continued to cloud investor sentiment. The benchmark index advanced despite broader weakness across Asian markets, as investors balanced support from the Reserve Bank of India's recent liquidity and forex measures against renewed concerns over escalating Middle East tensions, which drove oil prices higher. The index was driven higher by gains in consumer non-durables, with top performers including Hindustan (+2.9%), Cupid (+2.7%), Nestle (+2.8%), COLPAL (+2.9%), and Varun (+1.0%). Other notable gainers across sectors included Meesho (+1.7%), Himadri (+1.6%), Reliance (+2.1%), Afcons (+5.9%), and TCS (+1.2%). Meanwhile, investors will continue to monitor developments in the Middle East, movements in crude oil prices, foreign portfolio flows, and the rupee for further direction throughout the session.