Indian equity benchmarks scaled one-month peaks on Wednesday amid a rebound across most sectors, as the recent drop in oil prices boosted consumption stocks and aided the sentiment on Dalal Street. However, concerns persisted among investors globally about sharp hikes in COVID-era interest rates and their impact on economic growth.

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NSE

Both headline indices held on to much of their intraday gain of 1.3 percent. The 30-scrip Sensex index jumped 685 points to touch 53,819.3 at the strongest level of the day, and the broader Nifty50 benchmark climbed to as high as 16,011.4, up 200.5 points from its previous close.

Both main gauges clocked their highest closing levels since June 10.

Bajaj Finance, Bajaj Finserv, Britannia, Hindustan Unilever, Eicher, Hero MotoCorp, Asian Paints, Titan and Maruti Suzuki —finishing around 3-5 percent higher — rose the most among the 40 gainers Nifty50 basket.

HDFC Life Coal India and Larsen & Toubro — declining around half a percent — were also among the top blue-chip laggards.

Hindustan Unilever, HDFC Bank, Bajaj Finance, Infosys and Kotak Mahindra Bank together accounted for more than 300 points in the rise in the 30-strong index.

Bajaj Finance surged after the private sector financier reported a 61 percent year-on-year jump in new loans boosted by robust customer addition.

Crude oil rates recovered some of the previous day's losses but remained well off their recent peaks. On Tuesday, benchmark Brent crude futures rose by $2.8 a barrel or 2.7 percent to $105.6 a barrel, having plunged 9.5 percent on Tuesday — their biggest daily drop since March.

"Crude prices fell over recessionary fears, but the fall has boosted the appetite for consumption, chemicals, logistics and oil marketing companies as it will reduce the cost burden of these sectors," said Vinod Nair, Head of Research at Geojit Financial Services.

ONGC and Oil India fell after crude oil rates retreated from their recent peaks.

Hindustan Unilever, Britannia and Godrej Consumer shares jumped after a fall in global palm oil rates.

Dabur shares rose 2.3 percent after the FMCG company said is expects to report high single-digit growth in revenue in the April-June period. The company said its business has been fairly resilient in a challenging macro environment.

Central banks are trying hard to tame commodity prices, said Sanjay Mookim, Strategist and Head of India Equity Research at JPMorgan India.

“It is very difficult to put a valuation filter on commodity stocks or commodity sectors. Unless you take the view that whether for oil, steel or aluminium, the net realisation and margins are trying to go up or go down, you are not able to say if anything is priced or valuations are comfortable to buy commodities," he told CNBC-TV18.

Overall market breadth was in favour of the bulls, as 1,221 stocks rose and 846 fell on NSE.

Global markets

Equities across Europe began the day in the green as an end to a strike by Norwegian oil and gas workers eased worries of an energy supply crunch. The pan-European Stoxx 600 index was up 1.7 percent at the last count.

S&P 500 futures were down 0.2 percent, suggesting a sluggish start ahead on Wall Street.

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