Sensex, Nifty Rise on Lower Crude Prices and Strong Auto Sales

Mumbai: Indian benchmark equity indices opened higher on Thursday, supported by a sharp decline in global crude oil prices, robust automobile sales for June, and optimism surrounding upcoming first-quarter corporate earnings.

The BSE Sensex climbed nearly 300 points, or 0.38 per cent, to an intraday high of 77,218.78, while the Nifty 50 gained 86 points, or 0.35 per cent, to reach 24,092.05 during early trade.

Technology stocks led the rally, with the Nifty IT index rising more than 3 per cent. Other sectors posting gains included consumer durables, metals, real estate, and mid- and small-cap IT and telecom stocks. In contrast, PSU banking and media shares traded in negative territory.

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Among the major laggards on the Nifty were NTPC, Power Grid Corporation of India, Bajaj Finance, Oil and Natural Gas Corporation and Bharti Airtel, each declining by up to one per cent.

Market analysts said easing crude oil prices are improving India's macroeconomic outlook by supporting economic growth while helping contain inflation. They also highlighted strong June automobile sales, particularly a 24.1 per cent increase in passenger vehicle sales, as evidence of resilient domestic demand.

Experts expect banking stocks and digital platform companies to remain in focus as investors look ahead to healthy first-quarter earnings. However, they cautioned that the market's momentum will depend significantly on the progress of the monsoon, which has so far remained below expectations.

In the global commodities market, Brent crude fell more than one per cent to around $70.65 a barrel, while US West Texas Intermediate (WTI) crude slipped 1.47 per cent to trade below $68 a barrel.

Asian markets presented a mixed picture. Japan's Nikkei 225 declined more than one per cent, while South Korea's KOSPI fell over four per cent. Hong Kong's Hang Seng Index, however, gained around one per cent.

Overnight, US markets ended lower, with the S&P 500 falling 0.22 per cent and the Nasdaq Composite closing 0.66 per cent lower.

With inputs from IANS