By Our Correspondent
Indian equity benchmarks ended marginally higher on Thursday, extending their gains for a second consecutive session, as easing crude oil prices and strong buying in automobile stocks supported investor sentiment. However, profit booking in the latter half of the session and weakness in metals, information technology, oil & gas, and energy counters limited the market’s upside.
The BSE Sensex rose 109.25 points, or 0.14 per cent, to close at 77,100.47, while the NSE Nifty 50 gained 34.35 points, or 0.14 per cent, to settle at 24,056, maintaining its hold above the key 24,000 level. During intraday trade, the Nifty touched a one-month high of 24,261.60 before surrendering a large part of its gains.
Over the past two trading sessions, the Sensex has advanced 1.18 per cent and the Nifty nearly 1 per cent, reflecting improved risk appetite amid declining geopolitical concerns and softer energy prices.
Auto, Banking Counters Lead
Automobile stocks emerged as the primary drivers of the rally. Mahindra & Mahindra surged nearly 4 per cent, while Maruti Suzuki India gained over 3.8 per cent. Banking heavyweight ICICI Bank also contributed to the benchmarks’ gains, rising close to 1 per cent.
Market participants said lower crude oil prices are expected to benefit automobile manufacturers and fuel-intensive sectors by reducing input and operating costs.
Broader Markets Under Pressure
Despite gains in frontline indices, broader markets remained under pressure. The BSE MidCap Index declined 0.44 per cent and the SmallCap Index slipped 0.51 per cent, indicating selective buying in large-cap stocks.
Market breadth was weak, with declining stocks significantly outnumbering advancing shares. On the BSE, 2,581 stocks ended lower against 1,641 gainers, while 192 shares remained unchanged.
Investor anxiety also eased, with the India VIX, the market’s volatility gauge, falling 2.5 per cent to 13.05.
Oil Prices and Currency Support Sentiment
Global crude prices continued to retreat as concerns over supply disruptions in the Middle East eased. Brent crude futures fell 1.34 per cent to around $72.75 per barrel after reports indicated smoother tanker movement through the Strait of Hormuz following diplomatic progress involving Iran and the United States.
The decline in oil prices provided support to emerging markets, including India, by improving inflation expectations and reducing pressure on import costs.
The Indian rupee also strengthened marginally against the US dollar, trading around 94.40 compared with the previous close of 94.55.
Meanwhile, the yield on India’s benchmark 10-year government bond eased slightly to 6.78 per cent, reflecting stable debt market sentiment.
Global Markets Positive
Global equities largely traded higher, led by gains in technology shares. Investor confidence received a boost after strong earnings outlooks from US semiconductor companies Micron Technology and Qualcomm, reinforcing optimism around artificial intelligence-related investments.
Technology-heavy markets in Japan and South Korea outperformed, while European stocks also advanced on expectations of sustained AI-driven demand and lower energy costs.
On Wall Street overnight, the Dow Jones Industrial Average gained 0.35 per cent, while the S&P 500 and Nasdaq ended marginally lower ahead of key corporate earnings announcements.
Aviation Stocks Soar
Among sectoral movers, airline stocks rallied sharply as lower crude oil prices improved profitability prospects. InterGlobe Aviation, the parent company of IndiGo, climbed nearly 5 per cent, while SpiceJet gained 2.7 per cent.
Gold financing companies, however, came under selling pressure following a decline in bullion prices. Shares of IIFL Finance and Muthoot Finance fell more than 3 per cent each.
Corporate Developments
Sterlite Technologies hit the upper circuit after launching its Qualified Institutional Placement (QIP) and announcing a floor price of ₹613.69 per share.
RailTel Corporation of India slipped despite securing a ₹29.83 crore contract from Andhra Pradesh’s Southern Power Distribution Company for implementing an SD-WAN solution.
Meanwhile, Electrosteel Castings declined after announcing the resumption of operations at its Mini Blast Furnace facility in West Bengal.
IPO Market Remains Active
The primary market witnessed mixed investor response. Advit Jewels attracted exceptional demand, with subscriptions exceeding 211 times the shares on offer. Waterways Leisure Tourism was subscribed 1.45 times, while CSM Technologies remained under-subscribed at 0.61 times as of Thursday afternoon.
With domestic markets set to remain closed on Friday for Muharram, investors will closely track global cues, crude oil movements, and developments in international markets when trading resumes on Monday.