Indian benchmark equity indices extended their winning streak for a fifth consecutive session on Thursday, supported by easing crude oil prices, improving global risk appetite, and optimism surrounding a potential US-Iran peace agreement.
Key Highlights
- Sensex climbed 254 points while Nifty closed above 24,150 amid positive sentiment.
- Falling crude oil prices and US-Iran peace hopes supported broad market gains.
The BSE Sensex gained 254 points to close at 77,410, while the Nifty 50 settled above the 24,150 mark at around 24,168, registering steady gains despite concerns over the US Federal Reserve's policy outlook. The rally marks a continuation of the strong momentum seen over the past week, with both indices gaining more than 4% during the last five trading sessions.
Falling Crude Prices Drive Market Optimism
A major catalyst for the market's rise was the sharp decline in global crude oil prices. Brent crude futures slipped to around $77.8 per barrel, extending losses after reports of a peace agreement between the United States and Iran. Lower oil prices are viewed positively for India, which imports a significant portion of its crude oil requirements, as they help reduce inflationary pressures, improve corporate profitability, and support economic growth.
Market participants believe that sustained softness in energy prices could ease pressure on India's current account deficit while strengthening investor confidence in domestic equities.
Financials Lead Gains; IT Stocks Under Pressure
Sector-wise, buying interest remained broad-based, with 13 of the 16 major sectoral indices ending in positive territory. Financial stocks attracted investor attention after the National Stock Exchange moved a step closer to its much-awaited initial public offering. Textile and consumer-focused stocks also gained following positive developments related to the India-UK free trade agreement.
However, information technology stocks underperformed the broader market. The Nifty IT index declined as investors assessed the implications of the US Federal Reserve's latest policy stance. Concerns over a potential future rate hike and slower technology spending in key overseas markets weighed on sentiment for export-oriented IT companies.
Also Read: US Fed Holds Rates Steady at 3.50-3.75%: What it Means for India?
Broader Markets Continue Outperformance
The broader market remained resilient, with mid-cap and small-cap stocks continuing to outperform benchmark indices. Positive market breadth and sectoral rotation into healthcare, retail, defence, and consumption-linked counters reflected healthy investor participation beyond frontline stocks.
Among notable gainers, aviation, retail, healthcare, and defence-related stocks witnessed strong buying interest, while select IT counters faced profit booking.
