Sensex settled 0.14% higher at 77,100.47 after an intraday surge of about 1%, with Nifty ending at 24,056. Brent crude fell 1.26% to $72.81 a barrel, while Asian markets like Kospi and Nikkei posted strong gains.
Sensex and Nifty Edge Up Second Day as Falling Crude and Global Rally Lift Sentiment
Up nearly 1% in the morning, the Sensex closed just 0.14% higher.
Mark
The Sensex ended up only 0.14%. Why is that worth a story?
Mimi
Because of the path it took. It was up about 812 points at the high of 77,803.18 and closed just 109 points higher. The story is how much of the rally disappeared.
Luke
Worth saying what's confirmed there: the numbers are exchange figures. The explanation, profit-taking in IT and metals, is the reporting's account of the second half.
Mark
What lifted it early on?
Mimi
Brent fell 1.26% to $72.81, which supported the rupee, and global markets were rallying. Kospi was up 5.42% and the Nikkei 4.61%.
Luke
The link between oil and the open is Vinod Nair's reading. It's plausible, but it's one analyst's interpretation, not something the data proves.
Mark
Anything under the surface of the index?
Mimi
Breadth. Nineteen of the 30 Sensex stocks fell, and only 11 rose. IndiGo's parent InterGlobe jumped 4.82%, while Infosys and Tech Mahindra slipped.
Mark
And foreign investors?
Mimi
They sold ₹1,843.40 crore of equities on Wednesday, even as the market rose 1.04% that day.
Luke
That's one day of selling. It doesn't establish a trend, and we don't know yet what they did Thursday.
Mimi
With Friday closed for Muharram, next week's flows are the thing to watch.
Il Polso
- Sensex closed at 77,100.47, up 109.25 points (0.14%)
- Nifty ended at 24,056, up 34.35 points
- Brent crude fell 1.26% to $72.81 a barrel
- FIIs sold ₹1,843.40 crore of equities on June 24
- Markets closed Friday, June 26, for Muharram
Sensex settled 0.14% higher at 77,100.47 after an intraday surge of about 1%, with Nifty ending at 24,056. Brent crude fell 1.26% to $72.81 a barrel, while Asian markets like Kospi and Nikkei posted strong gains.
Sensex and Nifty edged higher on Thursday as softening crude oil prices and a global rally lifted sentiment, though profit-taking in IT and metal shares capped gains.
The Sensex was up nearly a full percentage point on Thursday morning, touching 77,803.18, a gain of 811.96 points over the previous close. By the closing bell, almost all of it was gone. The 30-share index settled at 77,100.47, higher by just 109.25 points, or 0.14%, its second straight session in the green.
The early strength had two sources: softer crude oil prices and a rally across global markets. Brent crude, the global benchmark, fell 1.26% to $72.81 a barrel. Cheaper oil helped the rupee, and that gave Indian equities a cushion at the open. In the second half of the session, though, traders took profits in IT and metal shares, and the gains drained away.
The breadth of the market shows how thin the advance was. Of the Sensex's 30 constituents, 19 declined and only 11 rose. The NSE's 50-share Nifty rose 34.35 points, also 0.14%, to finish at 24,056. During the day it ranged between a high of 24,261.60 and a low of 24,039.
Among the gainers on the Sensex, InterGlobe Aviation, the parent of IndiGo, was the standout, jumping 4.82%. Mahindra & Mahindra, Maruti, State Bank of India, ICICI Bank and Hindustan Unilever also closed higher. On the other side were Power Grid, Bharat Electronics, Tech Mahindra, Infosys and Bharti Airtel.
Vinod Nair, Head of Research at Geojit Investments Limited, described the day as flat, with early gains offset by profit booking. He said the sharp fall in crude supported the rupee and offered some cushion, but not enough to sustain upward momentum. Auto stocks were the strongest sector, he said, helped by softer metal prices, easing supply chain constraints and improving retail demand during the month.
The regional picture was far stronger than the domestic one. South Korea's Kospi jumped 5.42% and Japan's Nikkei 225 climbed 4.61%. Shanghai's SSE Composite ended marginally higher, while Hong Kong's Hang Seng settled lower. European markets were trading in positive territory, and U.S. markets had ended the previous session on a subdued note.
Foreign Institutional Investors sold equities worth ₹1,843.40 crore on Wednesday, June 24, according to exchange data. That session had been the stronger one for Indian benchmarks: the Sensex rose 790.54 points, or 1.04%, to 76,991.22, and the Nifty gained 197.55 points, or 0.83%, to 24,021.65.
Indian markets will be closed on Friday, June 26, for Muharram. Trading resumes next week, when foreign investor flows will show whether Thursday's fading rally was a pause or a limit.
Citazioni salienti
A sharp decline in crude oil prices supported the rupee and provided some cushion, but it was insufficient to sustain upward momentum.— Vinod Nair, Head of Research, Geojit Investments Limited
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Economy & Finance