Indian markets rebound: Sensex up 300 pts, Nifty nears 24,000 mark

Indian equity markets recovered strongly, with Sensex gaining over 300 points and Nifty inching towards 24,000. The rally occurred despite a nearly 6% surge in Brent crude prices to around USD 79 per barrel amid renewed US-Iran tensions.

The Indian equity markets kicked off on a positive note on Thursday with both benchmark indices starting the session with a gap-up opening. Sensex opened higher at 76,576.14 as against the previous close of 76,503.60, while Nifty opened at 23,928.95 as against the previous close of 23,882.05, recovering from yesterday's market crash.

Sensex surged over 300 points while Nifty inched near the psychological 24,000 mark in the early morning trade. At the time of writing this article, Sensex was trading at 76,822.84, up 319.24 points or 0.42 per cent while Nifty was trading at 23,995.50, up 113.45 points or 0.48 per cent.

Impact of Surging Oil Prices

Meanwhile, Brent crude surged nearly 6 per cent to around USD 79 per barrel after President Trump declared the ceasefire with Iran effectively void following fresh exchanges of fire in the Persian Gulf.

Expert Commentary

Ajay Bagga, banking and market expert, noted, "The Oil and Gas sector, alongside upstream energy explorers, will experience strong structural tailwinds mirroring the surge in global crude prices, though state-run downstream refiners could face pressure on marketing margins if global crude prices sustain their upward momentum." Bagga added, "Conversely, high-beta and interest-rate-sensitive pockets like Automobiles and Reality are likely to face capping pressures, given the sudden spike in global bond yields and the subsequent risk of higher for longer interest rates. Capital Goods and infrastructure plays are expected to witness stock-specific profit booking following their multi-session rallies, while large-cap Banking and Financials will look to act as the primary market anchor, with investors leaning heavily on robust credit growth metrics to offset global macroeconomic headwinds."

Vikram Kasat, Head Advisory, PL Capital, noted, "Rising oil prices could mean a rebound in gas prices at the pump and higher prices for consumers. US Treasury yields rose, with the 10-year yield up 0.038 percentage point, to 4.567%, its highest level since May 22."

Market Movers and Sectoral Trends

On BSE, Eternal, Titan, Asian Paint, HDFC Bank, ICICI Bank BEL, SBI, Reliance, Hindustan Unilever, Tata Steel, among others, were the major gainers while Infosys, Tech Mahindra, HCL Tech, among others, were the top drags. Sectorally, most indices traded in the green in the morning trade, except pharma and IT.

Global Cues and Commodity Markets

Meanwhile, Asian markets rose on Wednesday, led by gains in semiconductor and technology stocks on hopes of strong demand driven by artificial intelligence (AI). However, the rally was limited as oil prices jumped due to fresh tensions in the Middle East. Stock indices in Japan, South Korea and Taiwan gained up to 2 per cent.

US markets closed mixed overnight. The Dow Jones Industrial Average fell 1 per cent after US President Donald Trump said the ceasefire with Iran may have broken down and hinted at possible additional US strikes. Investor sentiment was also affected by the latest FOMC meeting minutes, which suggested there could be one more interest rate hike this year. The Nasdaq Composite, however, ended higher, supported by strong gains in semiconductor stocks.

European markets ended lower, while oil prices surged after Trump questioned the Iran ceasefire and warned of possible further US military action. Benchmark indices in the UK, Germany and France each declined by around 2 per cent.

In commodities, gold prices fell 1 per cent to about USD 4,072 per ounce. Trump's comments raised concerns that renewed conflict could increase inflationary pressures and keep interest rates higher for longer. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)