The Indian stock market closed in the deep green on Thursday, with Sensex and Nifty rising more than 0.7% each as oil prices crashed to $70 per barrel.
Sensex jumped nearly 580 points to close at 77,502, while Nifty 50 jumped around 170 points to end the session at 24,176. This came as India VIX, which measures market volatility, tumbled nearly 8% to 12.22.
Infosys shares jumped nearly 6% to lead gains on Sensex, while peers Tech Mahindra, HCL Technologies and Tata Consultancy Services (TCS) followed, rising 4-5% after dropping to 52-week lows in the previous session. Bucking the trend, L&T, Maruti Suzuki, Bharat Electronics (BEL) and Axis Bank fell nearly 1%.
Smallcaps outperformed, with the Nifty Smallcap 100 index rallying more than 1%. Nifty Midcap 100, meanwhile, rose around 0.5%. Sectorally, the Nifty IT index jumped nearly 5% to lead gains, while Nifty Auto, Nifty Realty and Nifty Consumer Durables jumped over 1%. Nifty PSU Bank index slipped into the red.
Oil prices drop to $70/barrel
Oil prices dropped sharply on Thursday, with Brent crude futures falling close to $70 per barrel as peace talks between Iran and the US gained momentum. Negotiators from the two countries have been discussing maritime traffic in the Strait of Hormuz and unfreezing Iran's funds over the past two days in Doha.
US President Donald Trump said that shipping through the Strait of Hormuz had reached record levels and predicted further declines in oil prices. "Those boats are coming out of the Hormuz Strait. They're coming out by the numbers that nobody ever saw. We're setting records, actually," Trump said. "I don't give a damn if they're happy or sad, I want the prices to go down. And the oil is dropping like nobody would have thought. But I told you it would. Total control, we have total control of everything,” he added.
What lies ahead?
Indian markets ended higher as easing tensions around the Strait of Hormuz pushed crude prices lower, while dovish remarks from the Fed Chair reinforced expectations of moderating inflation and a supportive global rate environment, said Vinod Nair, Head of Research, Geojit Investments.
He noted that the sentiment was further aided by optimism surrounding the India–Japan Summit, with investors anticipating deals on trade, defence, semiconductors, AI cooperation, a proposed rupee-yen settlement framework and deepening bilateral capital flows. “Sectorally, the standout performer was the IT sector, which, supported by short covering, also rallied following the strengthening view that Indian IT firms will remain a key enabler of enterprise AI adoption. Going forward, market direction will be driven by the US non-farm payrolls data, the developments from the India–Japan summit, and the incoming Q1FY27 earnings results,” he added.
Technical view on Nifty
Nifty has broken out of its recent consolidation, indicating improving market sentiment, said Rupak De, Senior Technical Analyst at LKP Securities. He noted that the benchmark index is sustaining above its critical moving averages, reinforcing the positive trend. The momentum oscillator RSI has also broken above its falling trendline, signalling strengthening momentum.
“In the near term, the trend is likely to remain positive, with the index having the potential to advance towards 24,300–24,500. On the downside, immediate support is placed at 24,000. A breach below this level could drag the index back into a phase of consolidation,” he added.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
