Indian markets end higher on easing crude prices, RBI policy support; Sensex gains 374 pts

MUMBAI: Indian benchmark indices ended higher on Thursday after a range-bound trading session, supported by easing crude oil prices, the Reserve Bank of India’s steady policy stance, and selective buying in heavyweight, banking and energy stocks, according to market experts. The BSE Sensex settled at 78,954.76, gaining 373.76 points or 0.48 per cent, while the NSE Nifty closed at 24,636, up 11.35 points or 0.05 per cent.

Vinod Nair, Head of Research at Geojit Investments Limited, said markets drew support from the moderation in crude oil prices, aided by intensified diplomatic efforts to restore regional stability and normalize shipping activity through the Strait of Hormuz.

“The positive sentiment was further reinforced by the RBI’s steady policy stance and constructive growth outlook, prompting selective buying in heavyweights, banking, and energy stocks. Investors are also increasingly pricing in an improvement in upcoming quarters’ earnings, as softer crude prices could ease inflationary pressures and support margin expansion,” Nair said.

He added that Reliance Industries attracted renewed investor interest, with bargain buying emerging after an extended phase of oil-to-chemicals (O2C)-led underperformance, as markets reassessed its long-term value proposition across its energy, telecom and retail businesses.

“However, profit booking witnessed across many sectors like auto, metals, IT, realty and cement sectors, but the broader market remained resilient, led by stock-specific rallies in small-cap stocks,” he added.

Buying interest was witnessed in pharmaceuticals, healthcare, chemicals, realty, oil and gas, and select mid-cap stocks. Among sectoral indices, Nifty PSU Bank emerged as the top gainer, rising over 2 per cent, followed by Nifty Chemicals, which gained more than 1 per cent.

On the BSE, SBI, Reliance Industries, BEL, Titan, Eternal, ICICI Bank, Larsen & Toubro, Hindustan Unilever, Trent and ITC were among the top gainers. Power Grid, TCS, Mahindra & Mahindra, IndiGo, Tech Mahindra, Sun Pharma, HCL Tech and Axis Bank were among the major losers.

On the NSE, Reliance Industries, BEL, Eternal, Sun Pharma, Axis Bank, Larsen & Toubro and Hindustan Unilever were among the leading gainers. Bajaj Auto, Power Grid, Bharti Airtel, TCS, ONGC, IndiGo, Kotak Mahindra Bank, SBI Life, Tech Mahindra, Infosys, Wipro and Bajaj Finance were among the top laggards.

In the commodities market, Brent crude was trading at around USD 79.50 per barrel, while WTI crude traded near USD 75.18 per barrel. Gold was quoted at around USD 4,271.56.

Market analyst Vipin Dixena said the market remained in a consolidation phase as investors balanced optimism over supportive domestic fundamentals against profit booking following the recent rally.

“The market continues to consolidate and ended muted as investors balanced optimism from supportive domestic fundamentals against profit booking following the recent rally. Weekly expiry kept volatility elevated throughout the day, while mixed sectoral performance capped the benchmark indices’ gains,” Dixena said.

He added that despite subdued benchmark performance, the broader market continued to outperform, with small- and mid-cap stocks extending gains on the back of earnings-driven buying.

“Nifty managed to hold above the 24,500 mark despite intraday volatility, indicating that bulls are still defending key support levels. However, the index needs a sustained move above the 24,650 resistance level to regain stronger upward momentum. Until then, I expect the market to remain range-bound,” he said. (ANI)