Indian equity benchmarks extended gains for a second consecutive session on Thursday, supported by a decline in global crude oil prices and positive cues from overseas markets.
The 50-share NSE Nifty rose by 34.35 points, or 0.14%, to close at 24,056. During the day, the index touched a high of 24,261.60 and a low of 24,039. The BSE Sensex also traded higher in line with the Nifty.
Broader market performance
Market breadth remained positive, with advances outnumbering declines on the NSE. Sectoral indices were mixed, with IT, pharma, and FMCG stocks leading the gains, while metal and realty stocks faced selling pressure.
According to analysts, the market sentiment was buoyed by a drop in crude oil prices, which eased concerns about inflation and its impact on corporate margins. Brent crude futures fell by nearly 1% during Asian trading hours.
Global cues and domestic factors
Positive global trends also contributed to the uptick. Asian markets traded higher following overnight gains on Wall Street, where the S&P 500 and Nasdaq posted modest increases. European markets opened in the green as well.
On the domestic front, foreign portfolio investors (FPIs) continued to be net buyers in the cash market, providing additional support. Data from the National Securities Depository Limited (NSDL) showed that FPIs have bought Indian equities worth over $2 billion so far in June.
Oil prices and inflation outlook
The decline in crude oil prices was attributed to reports of higher-than-expected U.S. gasoline inventories and concerns about global demand. A sustained fall in oil prices is seen as positive for India, which imports over 80% of its crude oil requirements.
Lower oil prices help reduce the country's import bill and ease inflationary pressures, potentially giving the Reserve Bank of India (RBI) more room to maintain an accommodative monetary policy stance.
Outlook for the markets
Market participants are now awaiting the release of key economic data, including the U.S. personal consumption expenditures (PCE) price index, which could provide further direction to global markets. Domestically, the focus will remain on monsoon progress and corporate earnings for the June quarter.
Analysts expect the market to remain range-bound in the near term, with stock-specific action driven by corporate announcements and sectoral developments. The Nifty is likely to find support at 23,800 and resistance at 24,300 levels.
