Stock markets rise for 2nd day, aided by falling oil prices, positive global trends

New Delhi: Benchmark stock indices Sensex and Nifty advanced on Thursday on gains in auto, aviation and banking shares as softening crude oil prices and a rally in global markets boosted investor sentiment.

Rising for the second consecutive day, the 30-share BSE Sensex settled 109.25 points, or 0.14 percent, higher at 77,100.47 even as 19 of its constituents declined and 11 advanced. The index opened higher and surged further 811.96 points, or 1 percent, to hit the day's high of 77,803.18. However, profit-taking in IT and metal shares erased gains in the second half.

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The 50-share NSE Nifty rose by 34.35 points, or 0.14 percent, to end at 24,056. The index hit a high of 24,261.60 and a low of 24,039 during the day.

Among Sensex stocks, IndiGo-parent InterGlobe Aviation jumped the most by 4.82 percent following a fall in global crude oil rates. Mahindra & Mahindra, Maruti, State Bank of India, ICICI Bank, and Hindustan Unilever were also among the gainers.

Power Grid, Bharat Electronics, Tech Mahindra, Infosys and Bharti Airtel were among the laggards.

"The domestic market concluded the day flat, as early intraday gains were offset by profit booking. While a sharp decline in crude oil prices supported the rupee and provided some cushion, it was insufficient to sustain upward momentum," Vinod Nair, Head of Research, Geojit Investments Limited, said.

On the sectoral front, auto stocks outperformed, driven by softer metal prices, easing supply chain constraints, and improving retail demand during the month, Nair added.

"Indian equity markets ended largely flat as early optimism driven by Micron's strong quarterly results, easing geopolitical tensions in the Middle East and a further decline in crude oil prices gave way to profit booking ahead of the long weekend," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Global market sentiment turned more constructive as Micron's strong earnings and upbeat guidance revived optimism around the technology and artificial intelligence sectors, he added.

Broader markets, however, declined as the BSE MidCap Select index declined 0.55 percent and SmallCap Select index dropped 0.37 percent.

Sectorally, Auto jumped 2.29 percent, followed by Services (0.52 percent), FMCG (0.50 percent), Consumer Discretionary (0.40 percent). Realty (0.29 percent) and Top 10 Banks (0.27 percent).

MidSmall Private Banks Quality Tilt dropped 1.61 percent, followed by Metal (1.37 percent), oil & gas (1.29 percent), Utilities (0.93 percent), Consumer Durables (0.76 percent), Capital Goods (0.65 percent), among others.

On the weekly front, the BSE benchmark climbed 297.57 points, or 0.38 percent, and the Nifty went up by 42.9 points, or 0.17 percent.

"Markets ended with tepid gains as investors booked profits in late trades ahead of an extended holiday. As markets will be shut on Friday on account of Muharram, investors trimmed their equity positions," Ankur Punj, MD & Business Head at Equirus Wealth, said.

Brent crude, the global oil benchmark, declined 1.26 percent to USD 72.81 per barrel.

In Asian markets, South Korea's Kospi jumped 5.42 percent, Japan's Nikkei 225 index climbed 4.61 percent, while Shanghai's SSE Composite index ended marginally higher. Hong Kong's Hang Seng index settled lower.

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Markets in Europe were trading in positive territory. US markets ended on a subdued note in the previous trade.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,843.40 crore on Wednesday, according to exchange data.

On Wednesday, the Sensex jumped 790.54 points, or 1.04 percent, to settle at 76,991.22. The Nifty climbed 197.55 points, or 0.83 percent, to end at 24,021.65.

Stock, money and commodities markets would remain closed on Friday for Muharram.

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