Source : INDIA TODAY NEWS
Benchmark indices opened higher on Thursday, extending their recent gains as crude oil prices fell to their lowest levels since before the Iran conflict, boosting sentiment for oil-importing economies like India.
The S&P BSE Sensex climbed 447.36 points, or 0.58%, to 77,438.58, while the NSE Nifty50 advanced 136.90 points, or 0.57%, to 24,158.55 as of 9:28 am.
The rally was supported by easing geopolitical tensions in West Asia, falling crude oil prices, and broad-based buying across banking and auto stocks. Investors also remained encouraged by expectations that lower oil prices would improve India’s macroeconomic outlook by reducing inflationary pressures and easing concerns around the current account deficit.
WHY ARE MARKETS RISING TODAY?
The biggest trigger for Thursday’s rally was another sharp fall in crude oil prices. Brent crude slipped 1.76% to $72.44 a barrel, while WTI crude fell 1.55% to $69.25, with prices now trading below levels seen before the Iran conflict began.
Oil prices have cooled after progress in US-Iran peace negotiations and the resumption of tanker movement through the Strait of Hormuz eased fears of supply disruptions.
For India, which imports more than 85% of its crude oil needs, lower oil prices are a significant positive. They help reduce import costs, improve the current account balance, keep inflation under control and lower input costs for several industries, ultimately supporting corporate earnings and economic growth.
AUTO, BANKING STOCKS LEAD THE RALLY
Auto stocks emerged as the biggest sectoral gainers, with the Nifty Auto index rising 2.04%.
Maruti Suzuki gained 2.55%, Mahindra & Mahindra rose 2.62%, while Bajaj Finance climbed 1.38%.
Financial stocks also remained strong. Nifty Financial Services advanced 0.79%, while Nifty Private Bank gained 0.59%.
Among banking heavyweights, State Bank of India rose 1.23%, ICICI Bank gained 0.99%, HDFC Bank added 0.90%, Kotak Mahindra Bank climbed 0.58% and Axis Bank was up 0.42%.
The strength in financials comes amid continued optimism over improving liquidity conditions and expectations that lower crude prices will support India’s economic fundamentals.
IT, BROADER MARKETS SHOW MIXED TREND
Unlike Wednesday’s strong rebound, the IT pack traded largely mixed.
The Nifty IT index slipped 0.14%, with Infosys falling 0.61% and Tech Mahindra easing 0.15%, while TCS gained 0.49% and HCLTech rose 0.55%.
Broader markets also traded with a positive bias. Nifty 100 gained 0.57%, Nifty 200 rose 0.50%, while the Nifty Midcap 50 and Nifty Midcap 100 added 0.25% and 0.23%, respectively. The Nifty Smallcap 100 was largely flat, down 0.05%.
India VIX declined over 3%, indicating easing market volatility.
WHAT ARE EXPERTS SAYING?
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said Brent crude falling below the $73 per barrel mark is the biggest positive for India at the moment.
According to him, lower oil prices have significantly reduced concerns around India’s current account deficit and balance of payments, improving the outlook for GDP growth and inflation in FY27.
However, he cautioned that a deficient monsoon remains a key risk. Sectors dependent on rural demand, including tractors, agrochemicals, fertilisers, entry-level two-wheelers and rural-focused FMCG companies, could face pressure if rainfall remains weak. On the other hand, pharmaceuticals, premium consumption, luxury automobiles and export-oriented sectors are likely to remain relatively resilient.
He also pointed to continued volatility in South Korea’s semiconductor-heavy market, saying foreign institutional investor flows into India may continue to be influenced by developments in global technology stocks.
– Ends
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SOURCE :- TIMES OF INDIA
