Indian equity markets closed with modest gains on Thursday, supported by a sharp decline in crude oil prices, although profit booking during the session capped further upside. The Nifty 50 index settled at 24,052.85, up 34.35 points or 0.14 per cent, while the BSE Sensex ended at 77,100.47, gaining 109.25 points or 0.14 per cent.
Crude Oil Decline Supports Market Sentiment
According to market experts, falling crude oil prices supported the rupee and helped maintain positive sentiment in the domestic market. Vinod Nair, Head of Research at Geojit Investments, said, "The domestic market concluded the day flat, as early intraday gains were offset by profit booking. While a sharp decline in crude oil prices supported the rupee and provided some cushion, it was insufficient to sustain upward momentum."
Auto Stocks Outperform
Auto stocks emerged as the best-performing sector during the session, driven by softer metal prices, easing supply chain constraints, and improving retail demand. Nair added, "On the sectoral front, auto stocks outperformed, driven by softer metal prices, easing supply chain constraints, and improving retail demand during the month. Overall sentiment remained constructive; the continued FII outflows can limit the upside. In the near term, sentiment may be influenced by a muted Q1 earnings outlook and an uneven monsoon, which should be monitored going forward."
Sectoral Performance
Among sectoral indices on the NSE, Nifty Auto surged more than 2 per cent to become the top gainer. Nifty FMCG rose 0.68 per cent, and Nifty Realty gained 0.33 per cent. On the losing side, Nifty IT declined 0.86 per cent, Nifty Media fell 0.63 per cent, Nifty Metal dropped 1.37 per cent, and Nifty Oil & Gas slipped 0.87 per cent.
Global Commodity and Market Movements
Brent crude oil prices continued to decline, trading at USD 72.71 per barrel at the time of filing this report, returning to levels seen before recent geopolitical tensions. Gold prices edged higher by 0.29 per cent to Rs 1,41,675 per 10 grams. In Asian markets, Japan's Nikkei 225 index surged 4.54 per cent, while South Korea's KOSPI gained more than 5 per cent. Singapore's Straits Times index rose 0.06 per cent. However, Hong Kong's Hang Seng index declined 1.22 per cent to close at 23,131.
Market Outlook
Commenting on market trends, Riyank Arora, Associate Vice President - HNI & Derivatives at Hedged.in, said Indian markets remained resilient despite largely range-bound trading. "The index continued to hold above the important 24,000 mark, indicating that the short-term trend remains positive," he said. Arora added that the market continued to consolidate with a positive bias, suggesting that buyers remain in control despite limited upside during the session. The broader structure remains constructive as long as key support levels are defended. Traders may continue to adopt a buy-on-dips approach while maintaining disciplined risk management, as the primary trend remains favorable.
