Sensex surges 1,534 points, Nifty reclaims 23,000 as falling oil prices boost sentiment

Domestic equity markets witnessed a massive rally on Thursday, closing significantly higher as a drop in global crude oil prices alleviated inflation fears and revitalized investor confidence.

The Sensex jumped 1,533.72 points, a gain of 2.11 per cent, to finish at 74,315.61. Similarly, the Nifty climbed 374.65 points, or 1.66 per cent, to end at 22,997.35.

Technical experts observed that the Nifty maintained a bullish structure throughout the session, characterized by a series of higher highs and higher lows, signaling robust buying momentum.

“While the index managed to cross the vital 23,000 threshold during intraday trading, it faced difficulty in staying above that level. The immediate resistance is pegged between 23,000 and 23,100. A successful breakout above this zone could fuel further rallies toward the 23,300–23,400 range,” market analysts commented.

“Conversely, if the index fails to hold the 22,800 support level, it may trigger fresh selling, potentially pulling the Nifty down toward the 22,600–22,500 zone,” they added.

The cooling of oil prices acted as a primary catalyst, reducing concerns regarding rising input costs and inflationary trends, which in turn sparked widespread purchasing in major stocks.

Leading the charge among Nifty stocks were Tech Mahindra, ICICI Bank, and Bharti Airtel, all of which provided crucial support to the indices.

In contrast, the broader market showed signs of exhaustion. The Nifty MidCap index retreated by 0.36 per cent, while the Nifty SmallCap index saw a steeper decline of 1.31 per cent.

Sectoral movements were varied. The Nifty IT index outperformed, driven by heavy interest in technology shares, whereas the Nifty PSU Bank index emerged as the main laggard.

On the NSE, the Nifty Private Bank index was the strongest performer among the sectoral benchmarks.

Analysts noted that the market’s short-term trajectory will likely be dictated by Q2 corporate earnings, the return of foreign institutional investment, and broader market participation. Additionally, stability in oil prices and the local currency remains vital given ongoing geopolitical tensions and global inflationary risks.

In the currency market, the Rupee strengthened by approximately 9 paise to reach 95.05. This appreciation was aided by a weaker Dollar Index, stabilized crude prices, and the overall positive tone in the Indian equity markets.