Sensex, Nifty gain over 1 pc on lower crude prices and global optimism
Mumbai, June 12
Indian equity markets rose in morning session on Friday, following positive global market cues amid a fall in oil prices and reports that US President Donald Trump had cancelled plans to strike Iran, citing progress in talks.
Sensex surged as much as 1.35 per cent or 1,000 points to touch an intraday high of 74,834 in early trade. Similarly, Nifty rose 1.26 per cent or about 300 points to 23,455.
Sectorally, all indices traded in green. Nifty Realty emerged as the top performer, rising 2.51 per cent, followed by Nifty Auto, which gained 1.79 per cent. Nifty Private Bank and Nifty PSU Bank indices advanced 1.29 per cent and 1.45 per cent, respectively. Other strong gainers included media, chemicals, consumer durables, oil & gas and cement.
Nifty Metals also traded higher, gaining 0.92 per cent, while Nifty FMCG was up 0.71 per cent and pharma and broader healthcare indices gained up to 0.86 per cent.
According to analysts, the near-term setup remains constructive, supported by strong global cues, sustained domestic institutional buying, and improving sectoral breadth. However, they cautioned that the sustainability of the rally will depend on whether indices can hold above key resistance zones in the coming sessions.
On the technical front, analysts noted the formation of an inverted hammer-like candlestick pattern, suggesting buying support at lower levels, though resistance continued to persist at higher zones. The RSI stood at 37.86.
"Key support is seen in the 23,000-23,100 zone, while resistance is placed around 23,600-23,650," the experts said.
US West Texas Intermediate (WTI) crude fell roughly 3 per cent to $85 per barrel, while international benchmark Brent crude declined 1.59 per cent to $88.94 per barrel.
Meanwhile, Asian markets extended gains, with the Nikkei rising more than 3 per cent, the Hang Seng surging 2 per cent, and the KOSPI advancing more than 8 per cent.
Wall Street closed higher overnight, with the Nasdaq rising 2.54 per cent and the S&P 500 gaining 1.75 per cent.
— IANS
Reader Comments
Lower crude prices are a blessing for India's import bill! 🛢️📉 And Trump cancelling strikes on Iran? That's some relief for global stability. Wish the analysts would stop with all the jargon though — just tell us in simple words: "Buy at 23,100, sell at 23,650" 😅
Global markets are all moving in tandem now. Nikkei up 3%, Hang Seng up 2%, and our Nifty up 1.26% — not bad at all. But the RSI at 37.86 shows we're still in oversold territory. Could be a good entry point if the momentum sustains through the week.
Finally some green on my portfolio! 😄 But I'm cautious — this could just be a dead cat bounce. The inverted hammer pattern they mentioned means buyers are there but sellers are waiting too. Let's not get too excited unless we cross 23,650 convincingly.
Good rally but I'm disappointed with the pharma and healthcare sector. Only 0.86% gain? When you compare it to realty's 2.51% and auto's 1.79%, it feels like the sector that actually matters for the country's well-being is being ignored. Hope the government focuses more on healthcare infra.
Lower crude = lower fuel prices soon? 🎉 The common man is really feeling the pinch at petrol pumps. If this rally means cheaper imports and eventually lower prices for us, then I'm all for it. Let the markets climb, but let the benefits reach the middle class too!
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