New Delhi: Benchmark equity indices Sensex and Nifty opened higher on Thursday, supported by gains in heavyweight Reliance Industries, strong buying in Adani Ports and continued inflows from foreign and domestic institutional investors. However, concerns over elevated crude oil prices, persistent inflation and high US bond yields kept investors cautious.
The 30-share BSE Sensex advanced 245.43 points, or 0.34 percent, to 73,491.46 in morning trade, while the broader NSE Nifty50 gained 62.55 points, or 0.28 percent, to 22,761.40.
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The recovery followed Wednesday's decline, when the Sensex fell 352.64 points to close at 73,246.03 and the Nifty slipped 50.90 points to settle at 22,698.85.
Adani Ports emerged as the biggest Sensex gainer, climbing around 3 percent after reporting an 18 percent increase in consolidated net profit to Rs 3,682.44 crore for the September quarter.
Power Grid, Kotak Mahindra Bank, Titan, Reliance Industries, NTPC, Tata Consultancy Services, Infosys, Hindustan Unilever, ITC and State Bank of India were among the other major gainers.
On the other hand, Trent, Maruti Suzuki India, Asian Paints, Bajaj Finserv, Larsen & Toubro, Tata Steel, HDFC Bank, Eternal and UltraTech Cement traded lower.
Shares of Jio Platforms extended their rally for a second consecutive session following their stock market debut on Wednesday. The stock surged more than 5 percent to Rs 1,490, taking the company's market capitalisation to approximately Rs 13.72 lakh crore.
Institutional buying provided a cushion to domestic equities despite uncertainty in global markets.
Foreign institutional investors (FIIs) purchased equities worth Rs 871.83 crore on Wednesday, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 643.35 crore, according to exchange data.
"Buying by both foreign and domestic institutional investors provided broad-based institutional support to the market," said Sachin Gupta, VP of Technical Research at Choice Broking.
The combined institutional purchases indicated continued interest in Indian equities, although analysts cautioned that sustained foreign inflows would depend on global interest rates, oil prices and relative market valuations.
The US Federal Reserve's decision to keep its benchmark interest rate unchanged at around 3.9 percent provided some reassurance to global investors. However, the central bank offered little clarity on the timing of future monetary easing amid stubborn inflation.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, said the Fed's decision was mildly positive for global equities but warned that India continued to face significant external pressures.
"The Fed holding rates as expected is mildly positive for equity markets, globally. However, from the Indian perspective, the headwinds continue to be strong.
"The 10-year US bond yield continues to hover around 5 percent, and there are no signs of easing of the crude prices," he said.
Vijayakumar also pointed to growing investor interest in semiconductor and artificial intelligence-related stocks in South Korea and Taiwan, suggesting that global capital could continue favouring these markets over India.
Brent crude, the international oil benchmark, declined 1.03 percent to USD 114.13 per barrel. Despite the marginal retreat, oil prices remained at levels that could significantly increase India's import bill and put pressure on the rupee.
"With crude remaining elevated for long, trade and current account deficits will widen, leading to depreciation of the rupee and the consequent imported inflation. This will further aggravate the high inflation, which will continue rising in the context of the hugely deficient monsoon this year," Vijayakumar added.
For India, which relies heavily on imported crude oil, sustained high prices could squeeze corporate margins, increase transportation and manufacturing costs, and complicate inflation management.
Asian equities showed divergent trends on Thursday. South Korea's Kospi declined around 3 percent, while China's Shanghai Composite fell approximately 1 percent. Hong Kong's Hang Seng and Japan's Nikkei 225 remained largely flat.
US stock markets had ended Wednesday's session higher.
Despite the positive opening on Dalal Street, the broader market outlook remained uncertain. Analysts said sustained gains would require continued institutional support and signs of easing pressure from crude oil prices and global bond yields.
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A subsequent Reuters market update showed the rally strengthening by 10:24 am IST, with the Sensex gaining 0.61 percent to 73,693.22 and the Nifty advancing 0.54 percent to 22,821.85. Reliance Industries rose 1.7 percent, while Adani Ports gained 3.4 percent. Fifteen of the 16 major sectoral indices were trading higher, suggesting the recovery had broadened beyond a handful of heavyweight stocks. Reuters
These are intraday figures, not closing levels.
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