Indian equities continued their upward trajectory for the third consecutive session, driven by robust IT sector gains and softer oil prices. The benchmark Sensex has cumulatively advanced around 2,000 points, with Nifty adding over 700 points in the recent surge.
By midday, Sensex was trading at 76,707, reflecting a 0.84% or 636-point increase. Nifty mirrored the strength, up 0.81% or 191 points at 23,770. Breadth was overwhelmingly positive, with midcaps and smallcaps outperforming: Nifty Midcap 100 up 1.77% at 56,156 and Smallcap 100 rising 1.52% to 16,154.
The IT pack stole the show, with Nifty IT index jumping nearly 4%. Credit goes to CLSA’s latest analysis, which rebuts concerns over emerging AI technologies from players like Anthropic and OpenAI impacting Indian IT firms. This reassurance sparked heavy buying in blue-chip names like Infosys, TCS, HCL Technologies, and Tech Mahindra.
International oil markets provided another tailwind, as WTI crude fell 3.43% to $92.91/barrel and Brent dropped 2.02% to $101.3/barrel. This decline mitigates input cost pressures for India’s oil-dependent economy.
Market fear gauge India VIX eased 4.30% to 18.94, indicating reduced volatility expectations. With positive domestic and global signals aligning, analysts predict the bulls could push indices to fresh highs unless countered by adverse developments.