Domestic equity markets showed gains on Thursday, with benchmark indices climbing up to 0.7%. Sensex surged by 0.61% to an intraday high of 75,071, while Nifty traded 0.72% higher at 23,581. Buying interest was observed in pharma, healthcare, metals, chemicals, banking, energy, cement, and FMCG sectors, with respective indices gaining over 1%.
On the flip side, Nifty IT faced selling pressure, with HCLTech, Infosys, TCS, and Tech Mahindra declining up to 1%. India VIX, the volatility tracker, rose over 3% to nearly 19. Market experts noted that money is flowing into markets like the US, Japan, South Korea, and Taiwan, leading to continued selling by foreign portfolio investors in India.
The expert highlighted that the rupee might face further depreciation unless factors like the opening of the Strait of Hormuz, a drop in crude oil prices, or changes in AI trade dynamics occur. Sustained rupee depreciation could negatively impact the market, leading to increased imported inflation and affecting companies with petroleum-based inputs.
In the commodities market, Brent crude rose by 0.52% to $106.18 per barrel, while US WTI crude gained 0.71% to $101.74. Across Asia, markets displayed mixed trends, with Japan’s Nikkei trading flat, and Hong Kong’s Hang Seng and South Korea’s KOSPI edging higher. However, Indonesia’s Jakarta Composite and China’s Shanghai Composite saw declines of up to 2%.
In the US, Wall Street closed higher, with the S&P 500 up by 0.59% and the Nasdaq by 1.2%.
