29/04/26, The equity benchmark indices Sensex and Nifty rebounded on Wednesday, supported by buying in blue-chip stocks and firm cues from Asian markets. At around 11 am, the Sensex rose 953.59 points or 1.24 percent to 77,840.50, while the broader Nifty advanced to 24,284.80, up 289.10 points or 1.2 percent. Market breadth was positive as about 2155 shares advanced, 1229 shares declined and 174 shares remained unchanged.

 All 16 major sectoral indices traded in the green. The Nifty Smallcap 100 and Nifty Midcap 100 indices gained 0.96 percent and 0.76 percent, respectively.

Key factors behind market rise

1) Value buying: Value buying was seen in key sectors such as auto, realty, IT and FMCG following the previous session's decline. On Tuesday, the Sensex had dropped 416.72 points or 0.54 percent to settle at 76,886.91, while the Nifty fell 97 points or 0.4 percent to end at 23,995.70

2) Rise in crude prices: Brent crude, the global oil benchmark, traded 0.21 percent lower at USD 111 per barrel. Lower crude oil prices are generally positive for India because the country imports a large share of its oil needs. When prices fall, the import bill declines, which helps reduce the trade deficit and eases pressure on the rupee. It also lowers input costs for companies, especially in sectors like transport, aviation and manufacturing, supporting margins.

3) Firm cues in Asian markets: Asian markets lent support, with South Korea's Kospi, Shanghai's SSE Composite and Hong Kong's Hang Seng trading higher.

4) Strong Q4 earnings: Maruti Suzuki gained 4 percent, recovering from a 2.5 percent fall in the previous session, even as the company reported a decline in March quarter profit, as multiple brokerages ‌cited ⁠steady demand and volumes as positives. The auto index emerged as the top sectoral gainer, rising up to 2.5 percent. Shares of  Eternal rose 2 percent, while Star Health advanced 8.6 percent on the back of quarterly earnings.

Technical Outlook

Anand James, Chief Market Strategist at Geojit Investments, said the Nifty showed signs of recovery despite initial weakness. "Subsequent hourly candles indicate buying interest at lower levels, suggesting a possible move towards the 24,350–24,470 range. However, failure to hold above 24,050 may keep downside risks towards 23,500 intact," he said

Report prepared by Mr Paras Bist of Network18