Indian equity benchmarks Nifty and Sensex gained on Thursday, with the Nifty crossing the 24,100 mark driven by a rally in IT stocks. The market was supported by crude oil prices falling below $71 per barrel and strong June GST collections of ₹1.95 lakh crore. Meanwhile, Adani Energy Solutions announced plans to raise ₹10,000 crore, even as the Indian rupee continues to face depreciation pressure.
What Happened
Indian equity markets traded higher on Thursday, with the benchmark Nifty index surpassing the 24,100 level. The Sensex also climbed, reclaiming the 77,000 mark. This upward move was led by a strong performance in the information technology (IT) sector, which saw renewed buying interest. The market rally was supported by favorable economic data and a decline in global crude oil prices, which typically benefits India’s import-heavy economy.
IT Sector Performance
IT stocks were the primary drivers of the market's gains. Infosys was among the top performers, jumping over 4% to ₹1,025.70. Other major IT companies also saw significant buying, with Wipro rising by 3.77% and HCL Technologies gaining 2.77%. Analysts noted that this sector-wide rally appeared to follow a period where IT stocks were trading in oversold territory, attracting fresh investor interest despite mixed sentiment in international markets like the US.
Macroeconomic Drivers: Oil and GST
Market sentiment was buoyed by two key economic indicators. First, Brent crude oil prices have fallen to a range of $67–$71 per barrel, marking their sharpest quarterly decline since 2020. As India is a major importer of crude oil, lower prices help contain inflation and support the country's macroeconomic stability.
Second, the government reported strong GST collections for June, which rose 13.9% year-on-year to ₹1.95 lakh crore. A significant portion of this growth came from import-related revenues, which increased by 34.6%, signaling sustained trade activity. Additionally, the automotive sector reported a 24.1% growth in passenger vehicle sales for June, suggesting resilient demand in the economy.
Adani Energy Fundraising
In corporate developments, the board of Adani Energy Solutions has approved a fundraising plan worth ₹10,000 crore. Investors typically monitor such capital-raising exercises to understand how the company intends to use the funds—whether for reducing debt, expanding existing capacity, or investing in new projects.
Risks To Watch
While the broader market sentiment remained positive, the Indian rupee continues to trade under pressure against the US dollar. Currency depreciation can be a concern for foreign investors and companies with significant external debt. Investors may track whether this pressure persists or if the Reserve Bank of India (RBI) takes steps to stabilize the currency.
What Investors Should Track Next
The key monitorables for the coming sessions include the movement in crude oil prices, as any sudden spike could reignite inflation concerns. Investors will also watch the sustainability of the IT sector rally and any further announcements regarding the timeline and method of the fundraising by Adani Energy Solutions. Additionally, the performance of the rupee remains a crucial factor for overall market stability.