Sensex Jumps 1,534 Points as Falling Oil Prices Lift Indian Stocks
MUMBAI — Indian stock markets rallied sharply Thursday as declining crude oil prices eased inflation concerns and encouraged investors to buy major banking and technology stocks.
The benchmark BSE Sensex surged 1,533.72 points, or 2.11%, to close at 74,315.61. The NSE Nifty 50 gained 374.65 points, or 1.66%, to finish at 22,997.35, just below the psychologically important 23,000 level.
The rally followed a decline in global crude oil prices, which helped ease concerns about inflation and rising business costs. Lower oil prices are particularly beneficial for India, which depends heavily on imported crude.
Investors responded by increasing their exposure to large-cap stocks, with technology and private banking shares attracting significant buying interest.
Tech Mahindra, ICICI Bank and Bharti Airtel were among the leading gainers on the Nifty, providing substantial support to the benchmark indices.
Market analysts said the Nifty maintained a positive trend throughout the session, opening higher and establishing a series of higher highs and higher lows, indicating sustained buying momentum.
Although the index briefly crossed 23,000 during intraday trading, it failed to maintain that level by the closing bell.
Analysts identified the 23,000–23,100 range as an immediate resistance zone. A sustained move above that range could strengthen the rally and potentially push the index toward 23,300–23,400.
On the downside, they warned that a drop below 22,800 could trigger renewed selling pressure, with the next support levels around 22,600–22,500.
Despite the strong performance of the headline indices, broader market sentiment remained uneven.
The Nifty MidCap index declined 0.36%, while the Nifty SmallCap index fell 1.31%, suggesting that the rally was concentrated primarily in larger companies.
Sectoral performance was also mixed. Information technology stocks recorded strong gains, while private banks were among the leading performers.
The Nifty PSU Bank index, which tracks publicly owned banks, was among the weakest sectoral indices during the session.
Analysts cautioned that sustaining the market’s recovery would require stronger corporate earnings, improved participation across the broader market and renewed foreign investment.
They also pointed to the importance of stable crude oil prices and currency movements amid continuing geopolitical uncertainty and global inflation concerns.
“Near-term sustainability will therefore depend on Q2 earnings delivering on revenue and margins, broader market participation and evidence of returning foreign flows, while durable stability in oil and the currency remains crucial amid geopolitical and global inflation risks,” analysts said.
Meanwhile, the Indian rupee strengthened by approximately 9 paise to 95.05 against the U.S. dollar.
The currency benefited from a softer U.S. Dollar Index, relatively stable crude oil prices and improved investor sentiment following the rally in Indian equities.
Market participants will now turn their attention to upcoming quarterly earnings reports, foreign institutional investment trends and global oil prices for indications of whether Thursday’s gains can be sustained. (Source: IANS)
