Indian stock markets delivered exceptional gains on Thursday, with Sensex climbing 500.44 points or 0.65% to 77,512.65 and Nifty 50 rising 153.95 points or 0.64% to 24,178.10 at 13:30 ST. According to Business Standard, the rally was primarily driven by falling oil prices that cooled below $70 per barrel, with Brent crude futures dipping 0.5% to $73.34 a barrel, inching closer to pre-war levels. The positive momentum built on Wednesday's strong performance, when Nifty 50 closed 198 points higher at 24,021.65 and BSE Sensex surged 790.54 points to close at 76,991. India VIX, which measures market volatility, dropped 3.39% to 12.93, indicating reduced uncertainty among investors.
Market sentiment appears broadly positive with most sectors trading in the green, as reported by latest market data. Realty, Auto, Financial Services, and Cement are leading gains, indicating strong buying interest in cyclical and rate-sensitive sectors. However, Metals and Media are lagging amid selective profit-taking, showing mixed performance across different sectors. Banking indices are also supportive, reflecting healthy investor confidence. Market breadth was negative with 1,767 shares rising and 2,314 shares falling on the BSE, while 203 shares remained unchanged. The BSE 150 MidCap Index jumped 0.08% and the BSE 250 SmallCap Index fell 0.22%, indicating broader market underperformance compared to frontline indices.
Maruti Suzuki India (up 4.82%), InterGlobe Aviation (up 4.53%), Max Healthcare Institute (up 4.57%), and Mahindra & Mahindra (up 4.26%) were the major Nifty50 gainers, leading the market rally with significant gains. Oil & Natural Gas Corporation (down 2.09%), Coal India (down 1.89%), Hindalco Industries (down 1.69%), and Titan Company (down 1.27%) were the major Nifty50 losers. Aviation stocks, including IndiGo and SpiceJet, advanced after crude oil prices fell sharply as easing supply concerns following progress in the Iran conflict improved sentiment. Asia-Pacific markets traded higher after strong earnings and outlooks from chip giants Micron and Qualcomm, with tech-heavy markets in Japan and South Korea gaining significantly. European stocks opened higher on Thursday, led by gains in technology stocks, as strong forecasts from Micron and Qualcomm assuaged concerns about ballooning valuations in the sector.
Brent crude futures dipped 0.5% to $73.34 a barrel, inching closer to pre-war levels as oil prices extended their decline as stranded tankers exited the Strait of Hormuz following an initial accord to end the U.S.-Israeli war with Iran, easing supply concerns. U.S. West Texas Intermediate fell 0.38% to $70.07 a barrel. Crude oil prices have extended their recent decline, erasing most of the gains recorded during the recent Middle East conflict as concerns over supply disruptions have eased, geopolitical risk premiums have unwound and global supply conditions have continued to improve. Easing oil prices may help reduce some inflation pressure, but elevated prices are likely to keep the U.S. Federal Reserve under pressure to raise interest rates, with investors pricing in at least one rate increase this year.
The rupee appreciated 31 paise to 94.24 against the US dollar in early Thursday trade, supported by a sharp decline in crude oil prices and positive domestic equities. However, gains were limited by a firm dollar index near 101.5 and continued FII outflows of ₹1,843 crore. The US Dollar Index (DXY) was trading 0.05% higher at 101.64, while the rupee appreciated 0.08% to close at 94.66 to the dollar on June 24. Silver and gold ETFs dropped as much as 8% on Thursday as precious metal prices remained under pressure for a second consecutive session on the MCX, with a stronger US dollar and growing expectations of US Federal Reserve rate hikes weighing on sentiment.
