Sensex, Nifty Recover From Early Slump To End Slightly Higher Led By Reliance, Energy Stocks 

Mumbai, May 20:Equity benchmarks staged a sharp recovery from deep morning losses to end marginally higher on Wednesday, as strong buying in Reliance Industries, energy, auto and capital goods stocks helped markets rebound despite persistent concerns around the U.S.-Iran conflict, elevated crude oil prices and rising global bond yields.

The BSE Sensex rose 117.54 points, or 0.16%, to close at 75,318.39, while the NSE Nifty 50 gained 41 points, or 0.17%, to settle at 23,659.00.

Markets had opened sharply lower amid weak global cues after Wall Street declined overnight and Asian markets came under pressure due to geopolitical tensions and inflation worries linked to the Middle East conflict. However, benchmark indices gradually recovered through the session as investors bought into heavyweight energy and auto stocks.

Reliance Energy Shares Lead Rebound

The recovery was largely driven by gains in oil & gas, power and energy counters, with Reliance Industries emerging as one of the biggest contributors to the Sensex’s rebound.

Nifty 50 bled for most of the day but managed to somehow end higher with help from Reliance. Source: NSE

Auto and capital goods stocks also witnessed strong buying interest as investors returned to cyclical sectors after the sharp morning correction.

Sectorally, oil & gas, power, energy and auto indices ended among the top gainers, while FMCG, IT and media stocks lagged the broader market.

Technology shares remained subdued amid concerns over weak global demand and continued pressure on U.S. technology stocks due to rising bond yields.

Volatility Eases by Close

Broader markets outperformed the headline indices, indicating improving risk appetite during the latter half of the session.

The Nifty Midcap 100 index rose nearly 0.5%, while smallcap shares also traded with a positive bias. Market breadth remained mixed, with 2,008 shares advancing against 1,920 declines on the NSE.

Meanwhile, India VIX, often referred to as the market’s fear gauge, declined more than 1% by the close, signalling easing volatility after the sharp intraday swings.

Global Worries Remain in Focus

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

Nifty Auto revved up a rescue for the benchmark as investors shifted into cyclicals. Source: NSE

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 concerned about supply disruptions and geopolitical uncertainty.

Brent crude continued to trade above the $110-per-barrel mark, keeping inflation concerns elevated globally.

At the same time, rising U.S. Treasury yields and a stronger dollar continued to weigh on emerging-market sentiment. The Indian rupee also touched a fresh record low against the U.S. dollar during the session amid persistent foreign fund outflows and higher crude prices.

Stock-Specific Action Remains Strong

Among individual stocks, Hindalco Industries gained after its U.S.-based subsidiary Novelis signalled an earlier-than-expected restart of its fire-hit Oswego plant despite raising estimates for the financial impact of the disruption.

Defence, telecom and EV-linked stocks also remained active, with retail participation continuing in momentum-driven counters such as Vodafone Idea, Apollo Micro Systems and Ola Electric Mobility.

Investors are now expected to closely track crude oil prices, global bond yields, foreign fund flows and developments in the Middle East for near-term market direction.

Source:

• NSE
• BSE