Sensex, Nifty rally for 4th straight session as lower crude oil price boosts sentiment
Mumbai, Aug 3
Indian benchmark equity indices extended their gains for a fourth consecutive session, supported by improved investor sentiment after a sharp decline in crude oil prices amid reports of potential talks between the United States and Iran.
The Sensex surged 544.39 points, or 0.7 per cent, to close at 78,639.03. Meanwhile, the Nifty recorded a stronger advance, ending at 24,774.30, up 391 points or 1.6 per cent, following the introduction of the new Closing Auction Session (CAS).
Comemnting on Nifty technical outlook, experts said that the 24,600 zone now acts as the immediate resistance area, where the index has repeatedly faced supply.
"A decisive and sustained breakout above this band could strengthen bullish momentum further and pave the way for an advance towards the 24,800 mark," an analyst stated.
"On the downside, the 24,500-24,400 region is expected to provide immediate support. Holding above this zone will be crucial to preserve the ongoing recovery, while a break below 24,400 could trigger short-term profit booking towards the 24,300-24,200 support zone," a market expert mentioned.
Buying was seen across several heavyweight stocks, with InterGlobe Aviation, Infosys and Tata Consultancy Services emerging as the top gainers in the Nifty index.
The rally in information technology stocks played a key role in lifting the broader market.
The positive momentum also extended to the broader market segments. The Nifty MidCap index settled 1.21 per cent higher, while the Nifty SmallCap index gained 1.29 per cent.
Among sectoral indices, the Nifty IT, Nifty FMCG and Nifty PSU Bank indices led the advances, benefiting from strong buying interest. In contrast, the Nifty Media index was the biggest laggard of the session and ended in negative territory.
Market experts attributed the bullish sentiment largely to easing concerns over crude oil prices.
"The Q1FY27 earnings season continues to progress ahead of expectations, with small-cap companies emerging as the strongest performers relative to large- and mid-cap peers," an analyst stated.
"Investors will closely watch the upcoming RBI policy meeting for commentary on inflation risks, liquidity conditions, and the future policy trajectory, although interest rates are widely expected to remain unchanged," a market expert stated.
— IANS
Reader Comments
Four straight days of gains! This is encouraging for retail investors like me. The IT sector rally makes sense with the global tech demand picking up. Just hoping this isn't another temporary bounce before a correction—we've seen that pattern before.
Good to see Indian markets holding up well. The oil price drop is a global tailwind, but the domestic fundamentals matter more long-term. Pleasant surprise that small-caps are outperforming—that shows broad-based strength in the Indian growth story.
The Nifty closing auction session seems to be adding some stability. But as a cautious investor, I'm watching the 24,600 resistance level carefully. If we break above that decisively, it could be a strong signal for a sustained bull run. 🤞
Easing oil prices helping sentiment is logical, but the RBI policy will be the real test. Keeping rates unchanged seems likely, though they might sound hawkish on liquidity. IT stocks performing well is a good sign for our tech exports.
Managed to book some profits today after the 4-day rally! The Q1 earnings are looking better than expected, especially for mid and small caps. But let's be honest—with crude prices this volatile, we need a consistent strategy, not just news-driven trades.
Well done to the FMCG and PSU bank sectors too; nice to see diversified buying.
Great to see the Indian market staying resilient. The boost from falling oil prices is a global phenomenon, and it's heartening that the broader indices are participating. Looking forward
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