Nifty 50, Sensex Edge Higher as Oil Prices Slip and Global Markets Rally

NEW DELHI — The Nifty 50 and Sensex inched up on Thursday, buoyed by a decline in crude‑oil prices and a broader rally in overseas markets. The move came after oil slipped for a second straight session, narrowing the cost pressure on energy‑intensive sectors and reviving buying interest in blue‑chip stocks.

Oil price retreat fuels market optimism

Crude oil futures on the MCX fell by about 1.2% to around ₹8,200 a barrel, extending a losing streak that began earlier in the week. Analysts said the dip reflected easing geopolitical tensions in the Middle East and a softer demand outlook in Europe. Lower input costs helped auto and petrochemical shares recover from earlier losses, providing the lift that steadied the broader market.

Indices climb on firm breadth

Both benchmarks posted gains on strong breadth, with more than 70% of the 75 Nifty‑50 constituents trading in the green. The Sensex, led by heavyweight banks and IT firms, rose on the back of a 0.4% jump in HDFC Bank shares after the lender reported better‑than‑expected loan growth. Meanwhile, the Nifty 50 saw a modest rise in the information‑technology sector as Infosys and TCS posted earnings that beat consensus estimates.

Global equities lift Indian sentiment

Across the Atlantic, the S&P 500 and Euro Stoxx 50 posted gains of 0.5% and 0.4% respectively, while Asian markets in Tokyo and Hong Kong also closed higher. The synchronized advance helped offset domestic concerns about inflation and a potential slowdown in consumer spending. Market watchers noted that the rally in global equities often translates into higher foreign institutional inflows into Indian stocks, a factor that contributed to the modest uptick in the Nifty and Sensex.

Sectoral performance and outlook

Energy stocks lagged the broader market, with Reliance Industries and Indian Oil seeing marginal declines as oil‑price pressure eased. Conversely, consumer‑discretionary and real‑estate stocks posted gains, reflecting optimism that lower fuel costs could spur spending. The metals sector remained flat, while the financials index outperformed, driven by a rebound in private‑sector bank shares.

Investor sentiment and upcoming catalysts

Investor sentiment, measured by the Nifty 50 VIX, fell to 15.2, its lowest level in three weeks, indicating reduced volatility expectations. Traders remain watchful of the upcoming RBI policy meeting slated for early October, where the central bank is expected to hold rates steady but may signal future monetary easing if inflation continues to moderate.