Indian markets closed higher on Thursday, with the Sensex up 0.35% at 77,928 and the Nifty gaining 0.28% to 24,317. The rally was driven by robust foreign institutional buying and strong performances from major blue-chip stocks, despite global concerns over crude oil prices and interest rate trends.
Indian equity markets ended the Thursday session in the green, supported by steady buying in large-cap stocks and a notable surge in foreign institutional investment. The BSE Sensex gained 273.55 points to close at 77,928.15, while the NSE Nifty added 66.95 points to finish at 24,317.15. The trading day saw some intraday volatility, but demand for key blue-chip companies helped the indices recover from their morning lows.
Foreign Investment and Market Drivers
Exchange data highlighted that Foreign Institutional Investors (FIIs) remained net buyers, infusing approximately ₹2,981.87 crore into the Indian equity market as of the latest reported session. This liquidity helped cushion the market against external pressures, including rising geopolitical tensions in the Middle East and increased volatility in global crude oil prices, which saw Brent crude climb to USD 91.15 per barrel.
Shares of major companies played a pivotal role in the day's gains. Maruti Suzuki, Mahindra & Mahindra, Reliance Industries, HDFC Bank, and the State Bank of India were among the primary drivers for the Sensex. On the other hand, the market witnessed some selling pressure in specific stocks such as Adani Ports, InterGlobe Aviation, Bajaj Finserv, and Bharat Electronics.
Sector Performance and Economic Context
Sectoral trends reflected a clear shift in investor preference. The auto sector stood out with a gain of 1.58%, benefiting from positive market sentiment. Energy, Oil & Gas, and banking stocks also saw moderate gains, helping offset the losses in other segments. In contrast, the realty sector faced significant selling pressure, declining by 2.10%, alongside notable dips in the services and insurance sectors.
While the US Federal Reserve's decision to hold interest rates steady was in line with market expectations, a hawkish stance on inflation management continues to keep global investors watchful. Rising US bond yields also serve as a potential headwind for emerging markets. However, domestic factors, including a stable rupee and early earnings momentum for the first quarter of FY27, have provided a base for the market. Investors will continue to track how these domestic fundamentals compete against global uncertainties in the coming weeks, particularly regarding corporate profit margins and the sustainability of FII flows.