India's total stock market capitalisation crossed the $5 trillion mark on Wednesday, helping the country regain its position as the world's fourth-largest equity market, as benchmark indices extended gains for a fourth consecutive session and closed near six-week highs.
The Nifty 50 rose 0.40% to settle at 24,085.70, while the Sensex gained 0.45% to close at 77,155.62. Both indices have now advanced for four straight trading sessions, supported by easing crude oil prices, steady foreign fund inflows and improving risk sentiment.
The broader market also reflected the positive mood, while the India VIX declined, signalling lower volatility and increased investor confidence.
A key driver of Wednesday's gains was the sharp correction in crude oil prices after recent geopolitical tensions had pushed energy costs higher. Lower crude prices are generally viewed as positive for India, which imports a significant portion of its oil requirements, as they help ease inflationary pressures and reduce the country's import bill.
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The decline in oil prices also supported sectors sensitive to input costs and boosted overall market sentiment.
Global investors remained cautious ahead of the US Federal Reserve's policy decision due later in the day. The central bank is widely expected to leave interest rates unchanged.
The meeting marks the first policy decision under Federal Reserve Chairman Kevin Warsh, who faces the challenge of balancing persistent inflation concerns against calls to support economic activity.
Several Federal Open Market Committee members have recently highlighted the possibility that inflation could remain elevated for longer than anticipated. Rising energy prices following recent US military action involving Iran have added to those concerns, raising the prospect that policymakers may need to maintain a restrictive stance for an extended period.
The policy decision comes amid continued pressure from US President Donald Trump, who has repeatedly called for lower interest rates to support growth.
The Fed's commentary on inflation, growth and future rate expectations is expected to influence global markets, including emerging-market equities such as India.
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