Indian equities extended their rally on Thursday, with the Sensex rising more than 500 points and the Nifty 50 moving firmly above 24,150 as softer crude prices and better global cues lifted sentiment across Dalal Street.
The biggest support came from a sharp drop in oil prices. Brent crude slipped below $73 a barrel after fears of supply disruption in the Middle East eased and shipping through the Strait of Hormuz returned closer to normal. For India, a major oil importer, that is welcome news because lower crude usually helps cool inflation, supports the rupee and eases pressure on the fiscal deficit.
Buying was visible across banking and information technology stocks, which continued to lead the market higher. LIC, IRFC, Infosys and HDFC Bank were among the names that drew strong interest, while Hindustan Unilever, Nestle India and Sun Pharma were among the laggards as investors rotated into cyclical and rate-sensitive counters.
Traders also took comfort from a stronger tone across Asian markets and hopes that global trade talks may make progress. The mood improved further as worries around the Iran-related conflict faded, reducing the risk premium that had recently weighed on equities and commodities.
If crude stays calm and overseas selling pressure continues to ease, domestic equities could keep their upward bias.
Also Read: IRFC shares tumble 5% after Centre announces stake sale