Sensex climbs 374 points higher as lower oil prices lift market sentiments
Indian benchmark equity indices ended higher on Thursday, supported by easing crude oil prices and buying in PSU bank and chemical stocks.
The Sensex rose 374 points, or 0.48 per cent, to settle at 78,954.76, while the Nifty gained 11.35 points, or 0.05 per cent, to close at 24,636.00.
Commenting on Nifty technical outlook, experts said that on the downside, the 24,600 level now acts as the immediate support, followed by the 24,500 zone, which remains a stronger demand area.
“From the derivatives perspective, the 24,600 strike continues to hold the highest Put Open Interest (OI), reinforcing it as a key immediate support, while the 24,700 strike carries the highest Call Open Interest (OI), making it the immediate resistance,” an analyst stated.
Among the Nifty constituents, Reliance Industries, State Bank of India and Bharat Electronics emerged as the top gainers, providing significant support to the market's upward move.
In the broader market, the trend remained mixed. The Nifty MidCap index declined 0.44 per cent, indicating some profit booking in mid-sized stocks, while the Nifty SmallCap index rose 0.48 per cent.
Sectorally, PSU banks and chemical stocks outperformed the broader market. The Nifty PSU Bank and Nifty Chemical indices registered strong gains as investors accumulated shares in these segments.
On the other hand, realty, media and automobile stocks witnessed selling pressure. The Nifty Realty, Nifty Media and Nifty Auto indices ended among the worst-performing sectoral gauges during the session.
Experts said that market participants continued to monitor global cues, particularly movements in crude oil prices, which remained supportive for sentiment.
“Lower oil prices are generally viewed as positive for India's economy as they help reduce import-related costs and ease inflationary pressures,” an analyst stated.
“Over the long term, CAS should enhance the integrity of closing prices, improve benchmark reliability, reduce end-of-day price distortions, and bring India's market infrastructure closer to global best practices. Investors should therefore focus on underlying business fundamentals rather than drawing conclusions from short-term benchmark divergences during this transition period,” a market expert stated.
