Indian stock indices closed higher on Wednesday, driven by foreign inflows, strong corporate earnings, and easing West Asia tensions, with the BSE Sensex and Nifty 50 reaching their highest levels since February 2026. The rally was heavily supported by heavyweight banking and auto stocks, alongside a significant return of foreign investors who pumped massive funds into domestic equities during November. Additionally, falling Brent crude oil prices and positive festival season sales further bolstered investor confidence across the majority of market sectors.

Indian stock indices closed higher on Wednesday, driven by foreign inflows, strong corporate earnings, and easing West Asia tensions, with the BSE Sensex and Nifty 50 reaching their highest levels since February 2026. The rally was heavily supported by heavyweight banking and auto stocks, alongside a significant return of foreign investors who pumped massive funds into domestic equities during November. Additionally, falling Brent crude oil prices and positive festival season sales further bolstered investor confidence across the majority of market sectors.

Indian stock indices closed higher on Wednesday, driven by foreign inflows, strong corporate earnings, and easing West Asia tensions, with the BSE Sensex and Nifty 50 reaching their highest levels since February 2026. The rally was heavily supported by heavyweight banking and auto stocks, alongside a significant return of foreign investors who pumped massive funds into domestic equities during November. Additionally, falling Brent crude oil prices and positive festival season sales further bolstered investor confidence across the majority of market sectors.

The Indian stock indices closed on a positive note on Wednesday, buoyed by foreign inflows, signs of a de-escalating West Asia conflict, and strong corporate earnings. 

The benchmark Nifty 50 rose 0.84 per cent to close at 25,255.05. The BSE Sensex gained 0.95 per cent to settle at 81,879.40. This is Dalal Street’s highest close since February 2026. Thirteen of the major 16 sectors traded higher. 

Mahindra and Mahindra, IndiGo, Trent, Tata Steel and ITC were winners in the Sensex bunch, while tech stocks like TCS, Infosys, HCL Tech and Tech Mahindra lagged behind. 

Heavyweight banks led the rally, raising their monthly gains to 11.2 per cent. Nifty Bank index gained 1.76 per cent to close at 60,792.40. India’s bank deposit growth has accelerated to over 17 per cent year-on-year, driven primarily by strong inflows into Foreign Currency Non-Resident Bank (FCNR-B) deposit schemes. 

Nifty Auto stocks climbed 2.14 per cent as investor sentiment turned positive over festival season sales and easing US-Iran tensions. 

The IIFL stock surged 6 per cent as investors weighed in on the news that Blackstone is set to invest ₹5,000 crore in the non-banking financial company. 

Factors that fuelled the market

Brent crude oil prices hovered around their 10-week low, at $93 per barrel. The Democrats’ victory and US President Donald Trump’s comments on de-escalating the conflict pointed towards easing tensions between the US and Iran. Signs of potential negotiation have also eased concerns of supply disruption in India. 

Foreign investors returned to domestic equities, with buyers pumping up to ₹55,000 crore in November, their biggest monthly purchase since September 2024. 

Wall Street ended lower overnight as US inflation rose 0.4 per cent in October, leading investors to fear a Fed rate hike in December. Fed Governor Christopher Waller’s commentary also pointed towards a rate hike. 

The Nifty 50 and BSE Sensex have gained about 10 per cent so far this month, after the Democrats’ victory in the US midterm elections and a global AI-linked stock sell-off. 

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