NIFTY50 and BSE SENSEX closed higher on Wednesday, May 6, driven by positive momentum from lower crude oil prices and global cues from West Asia. According to reports from Upstox Securities, the market rally was supported by favorable international developments that boosted investor sentiment across major indices.
IndiGo emerged as the top performer with a surge of 6.7%, leading the market gains on Wednesday. As reported by Upstox Securities, Tata Motors PV also posted strong gains, rising over 5% during the trading session. Trent was among the other notable gainers that contributed to the positive market momentum.
Crude oil futures for April delivery declined as much as ₹997 or 10.28% to hit an intraday low of ₹8701 per barrel on the Multi-Commodity Exchange (MCX) on Wednesday, May 6, tracking global prices. In the international market, Brent crude oil contracts for expiry in June fell as much as 7.65% to an intraday low of $101.46 per bbl. This decline came as US President Donald Trump announced the pause of 'Project Freedom,' in which the US Navy was escorting ships out of Iran amid the Strait of Hormuz closure. The latest media reports suggested that US Secretary of State Marco Rubio indicated that the initial US military operation in the US-Iran conflict is coming to an end.
The market rally was broad-based with multiple sectors participating in the upward movement. According to Upstox Securities, the positive momentum was primarily attributed to the decline in crude oil prices and supportive global cues from West Asia, creating a favorable environment for equity markets.
Despite the overall positive market sentiment, ONGC shares declined 3% during the trading session, according to Upstox Securities. This decline in the energy sector stock contrasted with the broader market gains and highlighted the selective nature of the day's trading activity.
