NSE, BSE Close Marginally Higher; Reliance Leads Rescue by Energy Stocks as Infosys, TCS, Coforge and Other IT Stocks Play Spoilsport 

Mumbai, May 20:Equity benchmarks ended marginally higher on Wednesday after staging a sharp recovery from deep intraday losses, led by strong buying in energy and auto stocks, while weakness in FMCG and IT counters continued to weigh on sentiment amid concerns over the U.S.-Iran conflict, elevated crude oil prices and rising global bond yields.

The NSE Nifty 50 rose 0.17% to close at 23,659.00, while the BSE Sensex gained 0.16% to settle at 75,318.39 after recovering from weak opening levels.

Energy, Autos Power Rebound

Energy and auto stocks emerged as the biggest drivers of the market’s recovery as investors rotated into cyclical sectors following the sharp morning selloff.

Reliance Industries was among the largest contributors to the Sensex’s rebound, while gains in oil & gas and power shares helped improve overall sentiment during the second half of the session.

The oil and gas index rose 1.6% aided by Bharat Petroleum Corporation Limited which fell after flat earnings before rising on management commentary about the company continuing to buy Russian crude and has bumping up spot market purchases to maintain refinery operations amid Iran disruption. BPCL rose over 2% to Rs 293. HPCL rose over 3% to Rs 382.7. IOC also edged up.

Auto counters also witnessed strong buying interest with their index rising 0.8% as investors returned to domestic cyclical plays despite persistent global uncertainty. Auto parts maker Samvardhana Motherson, however, failed to inspire the index much, rising just 0.5% despite reporting a rise in quarterly profit on the back of strong demand.

Financial stocks remained largely lukewarm and offered limited support to the benchmarks.

FMCG, IT Remain Under Pressure

Consumer and technology stocks dragged on the broader market.

FMCG shares declined amid concerns that elevated crude oil prices and a weakening rupee could increase input costs and pressure margins. Investors also remained cautious about slowing consumption demand.

Technology stocks declined as TCS, Infosys and Coforge fell, reversing their relief rally spanning a few sessions.

Media counters also remained weak amid concerns around slowing advertising demand and broader macroeconomic uncertainty. Zee Entertainment fell over five per cent after results.

Metals Flat Despite Hindalco Gains

Metal stocks largely traded flat. They would have fallen if not for Hindalco Industries which ended up as the biggest gainer on Nifty after its U.S.-based subsidiary Novelis signalled that its fire-hit Oswego plant could restart in the coming weeks.

The broader metals pack remained muted as investors balanced concerns over slowing global growth against elevated commodity prices.

Global Concerns Persist

Investor sentiment remained cautious as markets continued to track developments surrounding the U.S.-Iran conflict.

Although oil prices briefly eased after U.S. President Donald Trump said the Iran war would end “very quickly”, crude prices later edged higher again as investors remained worried about supply disruptions and geopolitical uncertainty.

Brent crude continued to hover above the $110-per-barrel mark, keeping inflation concerns elevated globally and increasing pressure on oil-importing economies such as India.

At the same time, rising U.S. Treasury yields and a stronger dollar continued to weigh on emerging-market sentiment. Investors are now expected to closely monitor crude oil prices, global bond yields, foreign fund flows and developments in the Middle East for further market direction.

Source:

• NSE