Mumbai — Indian stock markets rallied sharply Thursday as falling crude oil prices lifted investor confidence and eased concerns about inflation and rising business costs.
The benchmark Sensex surged 1,533.72 points, or 2.11%, to close at 74,315.61, while the Nifty gained 374.65 points, or 1.66%, to finish at 22,997.35.
The Nifty briefly crossed the psychologically important 23,000 level during intraday trading but failed to maintain those gains by the closing bell.
Market analysts said the index showed sustained buying interest throughout the session, recording a series of higher highs and higher lows after opening strongly.
They identified the 23,000–23,100 range as an immediate resistance level. A sustained move above that range could strengthen the rally and potentially push the index toward 23,300–23,400.
On the downside, analysts warned that a decline below 22,800 could trigger renewed selling pressure, with the next support range between 22,500 and 22,600.
Investor sentiment improved as crude oil prices declined, reducing concerns about inflation and higher operating expenses for Indian companies. The development encouraged buying in major stocks, particularly in banking and technology.
Tech Mahindra, ICICI Bank and Bharti Airtel were among the Nifty’s leading gainers, helping drive the advance in benchmark indices.
However, the rally was concentrated in larger companies, with smaller stocks failing to participate in the broader market gains.
The Nifty MidCap index declined 0.36%, while the Nifty SmallCap index fell 1.31%, highlighting the uneven nature of Thursday’s market performance.
Sectoral results were mixed. Technology stocks attracted strong buying interest, with the Nifty IT index among the leading performers. Private-sector banks also posted significant gains, while public-sector banking stocks lagged.
Analysts said the durability of the market recovery would depend on upcoming second-quarter corporate earnings, particularly revenue growth and profit margins, as well as broader investor participation and renewed foreign investment.
They also cautioned that continued stability in crude oil prices and the Indian currency would be important amid geopolitical uncertainty and persistent global inflation risks.
The Indian rupee strengthened approximately 9 paise to 95.05 against the U.S. dollar, supported by a weaker dollar index, stable oil prices and improved investor confidence following the sharp rise in domestic equities.
Despite the strong gains in benchmark indices, analysts said sustained market momentum would require stronger participation across sectors and evidence of improving corporate performance. (Source: IANS)
