Indian Shares Edge Higher As Financials Lead; U.S.-Iran Tensions Cap Gains
Adedokun Waliyu
2 min read
Indian shares edged higher on Wednesday, led by financial stocks ahead of key earnings, though gains were capped by escalating U.S.-Iran tensions and rising crude oil prices.
The benchmark Nifty 50 (.NSEI), opens new tab rose 0.11% to 24,078.50, while the BSE Sensex (.BSESN), opens new tab added 0.17% to 77,185.43.
They had risen about 0.8% during the session.
Brent crude climbed 1% to $85.5 a barrel as the U.S. and Iran exchanged fresh strikes and battled for control of the Strait of Hormuz.
Meanwhile, softer-than-expected U.S. inflation in June lifted market sentiment, propelling Asian and European equities higher as investors bet on a less aggressive Federal Reserve.
However, the inflation relief was driven largely by lower oil prices following the ceasefire, a fragile support that now looks increasingly at risk, said two analysts.
“Indian markets are delicately poised, with a host of moving parts set to influence the next leg of the trend,” said Amnish Aggarwal, co-head of institutional equities at PL Capital.
“While India’s broader economic growth story remains firmly intact, a decisive breakout is likely only if the monsoon deficit narrows and tensions around the Iran conflict ease,” Aggarwal said.
Eleven of the 16 major sectors gained. Small-caps (.NIFSMCP100), opens new tab and mid-caps (.NIFMDCP100), opens new tab rose 0.7% and 0.3%, respectively.
Financials (.NIFTYFIN), opens new tab rose 0.6% after losing 1.1% in the previous session.
Banks (.NSEBANK), opens new tab and private lenders (.NIFPVTBNK), opens new tab rose 0.5% and 0.3%, respectively, while state-owned banks (.NIFTYPSU), opens new tab added 1%.
ICICI Prudential Life (ICIR.NS), opens new tab jumped 3.8% after posting a June quarter profit rise.
HDFC Life (HDFL.NS), opens new tab gained 2.4%, and ICICI Lombard (ICIL.NS), opens new tab and HDB Financial (HDBF.NS), opens new tab added 1.5% each. The three firms are scheduled to report first-quarter earnings later in the day.
IT index (.NIFTYIT), opens new tab fell 0.7% after global technology firm and bellwether IBM Corp (IBM.N), opens new tab forecast second-quarter revenue below analyst estimates.
Tata Elxsi (TTEX.NS), opens new tab fell 4.8% after multiple brokerages cut fiscal 2027 earnings estimates after June-quarter results, citing margin worries.
