Sensex jumps 655 pts, Nifty hits 24,378 intraday; here’s why

Indian equity markets extended their winning streak for a third straight session on Friday, with benchmark indices surging in early trade amid easing crude oil prices, strong buying in information technology (IT) and metal stocks, and a favourable technical setup.

The BSE Sensex climbed as much as 655 points, or 0.85%, to 78,157, while the NSE Nifty50 advanced 202 points, or 0.83%, to 24,378 in early trade.

At 9:28 am, the Sensex was trading 550 points higher at 78,052, while the Nifty50 was up 173 points at 24,349.

The rally was supported by positive global cues after a softer-than-expected US June jobs report strengthened expectations that the US Federal Reserve could adopt a more accommodative policy stance. The Dow Jones closed at a record high, although the Nasdaq remained under pressure amid continued selling in AI and semiconductor stocks.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said India’s relative outperformance has also been aided by weakness in South Korea’s KOSPI and continued moderation in foreign institutional investor (FII) outflows.

“India’s outperformance continues aided partly by the weakness in KOSPI and the general weakness in the chip trade. The continuing tapering of the FII outflows is another significant factor supporting the market,” he said.

However, he cautioned that the rally would need stronger fundamental support to sustain.

1. Falling crude oil prices

A sharp decline in crude oil prices emerged as one of the biggest positives for Indian equities.

Brent crude slipped below $71 a barrel earlier in the session—the lowest level since late February—before recovering slightly. Lower oil prices ease inflationary pressures and improve India’s trade balance, as the country imports most of its crude oil requirements.

At last check, Brent crude was trading at $71.75 per barrel, while US West Texas Intermediate (WTI) crude stood at $68.63.

“The crash in crude to the pre-war level is the strongest macro support to the economy and the market,” Vijayakumar said.

2. IT stocks lead gains

Information technology stocks were among the top performers as investors returned to the sector after recent weakness.

The Nifty IT index jumped nearly 3% during early trade before paring some gains.

HCL Technologies led the rally with gains of around 4%, while Persistent Systems, Mphasis and Tech Mahindra rose more than 2% each.

According to Vijayakumar, attractive valuations have prompted buying in IT stocks, although the sector still lacks the earnings momentum needed for a sustained rally.

3. Heavyweight stocks lift benchmarks

Buying in index heavyweights also provided strong support to the benchmark indices.

ICICI Bank, HDFC Bank, Bharti Airtel, Infosys and HCL Technologies all traded firmly in positive territory, helping drive both the Sensex and the Nifty higher.

The broader market also remained positive, with the Nifty Midcap100 and Nifty Smallcap100 indices posting modest gains.

Among sectoral indices, IT and metals led the advances, while PSU banks and auto stocks underperformed.

4. Positive technical indicators

Market experts said technical indicators continue to point to a constructive outlook.

Aakash Shah, Technical Research Analyst at Choice Broking, said the Nifty’s immediate trading range lies between 24,000 and 24,300, with a breakout above 24,300 potentially opening the way towards 24,500–24,600.

Anand James, Chief Market Strategist at Geojit Investments, also remained optimistic.

“The prospects of 24,600 appear brighter. Inability to sustain above 24,170 could negate such hopes, though we will wait for a break below 24,000 before changing our view,” he said.

Analysts added that improving momentum indicators, supportive derivatives positioning and a decline in market volatility continue to underpin the current rally.