Sensex rises over 150 points, Nifty trades above 22,730 amid elevated crude oil prices

Indian equity benchmark indices edged higher in early trade on Thursday after opening on a flat note, as investors assessed elevated crude oil prices and the US Federal Reserve’s decision to keep interest rates unchanged.

The BSE Sensex gained over 150 points, while the NSE Nifty traded above the 22,730 mark amid mixed sectoral trends.

The Sensex opened at 73,268.47 and was trading at 73,405.24, up 159.21 points, or 0.22 per cent, from its previous close of 73,246.03 at the time of reporting.

Similarly, the Nifty opened at 22,690.65 and was trading at 22,745.05, gaining 45.90 points, or 0.20 per cent, from its previous close of 22,698.85.

Sectoral indices showed mixed trends, with auto, IT, metal, pharmaceutical, healthcare and telecom stocks trading higher. Meanwhile, FMCG, cement, oil and gas, realty, banking, consumer durables and financial services stocks remained under pressure.

On the NSE, Adani Ports, BSE, Power Grid, TCS, Titan, Coal India, Reliance Industries, HCL Technologies, Max Healthcare, Infosys, Kotak Mahindra Bank, NTPC, Bharti Airtel and Bharat Electronics were among the major gainers.

Trent, Hindalco, Maruti Suzuki, Nestle India, Larsen & Toubro, Bajaj Finance, HDFC Bank, ICICI Bank and ONGC were among the key laggards.

On the BSE, Adani Ports, Power Grid, NTPC, TCS, Reliance Industries, Titan, Kotak Mahindra Bank, HCL Technologies and Infosys led the gains. Trent, Bajaj Finserv, Maruti Suzuki, Larsen & Toubro, Bajaj Finance, Tata Steel, HDFC Bank and Eternal were among the major losers.

Ajit Mishra, Senior Vice President of Research at Religare Broking, said investors were likely to remain cautious amid concerns over corporate earnings, high crude oil prices and uncertainty surrounding the US Federal Reserve’s monetary policy outlook.

“Markets are likely to remain cautious today as investors weigh corporate earnings, elevated crude oil prices and the implications of the US Federal Reserve’s policy outlook,” Mishra said.

The US Federal Reserve kept interest rates unchanged and reiterated its commitment to bringing inflation under control.

“While the Fed kept rates unchanged, persistent inflation and the possibility of further tightening could sustain pressure on global financial conditions and foreign flows,” Mishra noted.

He added that elevated crude oil prices remained a major concern for India because of their potential impact on the country’s import bill, currency stability, inflation and corporate profitability.

“Brent crude near USD 113–115 per barrel remains a key concern for India, given its implications for the import bill, currency stability, inflation and corporate margins,” he said.

At the time of reporting, Brent crude was trading at approximately USD 114.05 per barrel, while crude oil was quoted at around USD 101.45 per barrel.

Market analyst Vipin Dixena said the near-term direction of domestic equities would depend on whether resilient corporate earnings could offset the impact of expensive crude oil and uncertain foreign investment flows.

“The market’s near-term direction will depend on whether earnings resilience can offset the pressure from expensive crude oil and uncertain foreign flows. Export-oriented companies may benefit from currency movements in some cases, but the impact will vary by sector and input-cost exposure,” Dixena said.

On the technical outlook, he said a sustained move above the 22,750–22,800 range could improve market sentiment, while the 22,600–22,500 zone would remain an important support area.

“A sustained move above the 22,750–22,800 zone would help improve near-term sentiment. The 22,600–22,500 zone is an important area to monitor; a decisive breakdown could invite further selling,” he said.

Dixena added that recent market weakness suggested rallies could continue to face selling pressure until the Nifty demonstrated sustained strength, clarifying that these were indicative technical levels rather than confirmed intraday levels.

(ANI Inputs)