The Indian domestic indices ended today’s trading session on a strong note as investors returned to buying amid improving global cues, easing crude oil prices and broad-based gains across sectors.
Both the benchmark indices closed more than 1% higher, extending the positive momentum seen during the intraday session.
The Sensex ended the session at 76,488.96, gaining nearly 1073.61 points or 1.42% during the day. Meanwhile, the Nifty settled above the crucial 24,000 mark at 24,031.70, up around 312 points or 1.32. The Nifty Bank also finished the session firmly in the green at 55,293, rising nearly 1238 points or 2.29%.
“Markets witnessed strong positive momentum, driven by a correction in crude oil prices amid rising expectations of a potential US–Iran deal. Global sentiment improved on reports of progress towards reopening the Strait of Hormuz, although credibility remains uncertain given frequent shifts in developments. The rally was led by large caps, supported by relatively attractive valuations versus long-term averages. On the sectoral front, financials outperformed on the back of strong Q4 earnings, while autos remained constructive,” said Vinod Nair, Head of Research, Geojit Investments.
The rally was largely driven by optimism surrounding easing geopolitical tension in West Asia, a sharp correction in global crude oil prices and buying in heavyweight banking, auto and financial stocks.
Let’s take a look at the key highlights of today’s trading session –
Crude oil cool-off lifts sentiment
One of the biggest triggers behind today’s market rally was the sharp fall in crude oil prices. Brent crude prices slipped below the psychologically important $100 per barrel mark, while West Texas Intermediate crude also witnessed a steep decline during the day.
The correction in oil prices came after improving hopes of progress in discussions linked to the US-Iran situation, which eased concerns over global oil supply disruptions.
Broader market participation remains strong
Today’s rally was not limited only to benchmark stocks. Broader market participation also remained healthy as investors continued buying across several sectors.
Banking, financials, auto and real estate stocks saw strong momentum during the session, while consumer durable and oil & gas counters also traded firmly in positive territory.
India VIX
The decline in volatility further supported market sentiment. India VIX, which measures market fear and volatility, declined nearly 6% to close around 16.85.
Auto and financial stocks lead the rally
Among the top gainers in today’s session, Eicher Motors emerged as one of the biggest outperformers, surging nearly 6% during the day. Adani Enterprises also witnessed strong buying interest and gained around 5%.
Other major gainers included Bajaj Finance, Larsen & Toubro, HDFC Bank and Bajaj Finserv, which helped lift the benchmark indices higher.
Banking and financial stocks remained among the biggest contributors to the rally.
Meanwhile, on the losing side, a few defensive and commodity-linked counters remained under pressure. Max Healthcare, ONGC, Hindalco and Nestle India were among the notable laggards during the session.
ONGC remained weak largely due to the sharp correction in global crude oil prices, while metal stocks also saw selective profit booking.
