Benchmark Indices Surge: Sensex Gains 200 Points, Nifty Crosses 23,900 on Strong IT Demand

Market Rises Amid Crude Oil Price Decline and Positive Global Cues

The benchmark equity indices Sensex and Nifty surged on Friday, driven by a decline in crude oil prices and positive global cues. The Sensex climbed by 216.34 points or 0.29 percent to 76,084.13, while the Nifty rose by 36.80 points or 0.15 percent to 23,943.95 at around 10 a.m.

The decline in crude oil prices was a key factor in the market's rise. Brent crude, the global oil benchmark, declined by 1.12 percent to USD 92.66 per barrel. This decline is beneficial for India, as the country imports a major portion of its oil requirement. Lower crude oil prices reduce the import bill, narrow the trade deficit, and ease pressure on the rupee. They also lower input costs for sectors such as transport, aviation, and manufacturing, supporting company margins and containing inflation.

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The broader Nifty Smallcap 100 and Nifty Midcap 100 indices were flat. IT, realty, and banking shares were among the major gainers, with IT stocks leading the gains. Wipro expanded its partnership with a US-based firm to scale AI adoption, leading to a 4.35 percent jump in the company's share price.

The rupee appreciated by 5 paise to 95.53 against the US dollar after reports of an understanding between the US and Iran to extend the ceasefire for another 60 days. This development improved global risk sentiment and raised hopes of sustained de-escalation in the Middle East.

The US and Iran reached an agreement on Thursday to extend their ceasefire and ease restrictions on shipping through the Strait of Hormuz, pending final approval from US President Donald Trump. However, the agreement has not been finalized.

The market's rise was also driven by positive global cues, with Asian markets such as South Korea's Kospi, Japan's Nikkei 225, and Hong Kong's Hang Seng trading higher. US markets had ended higher on Thursday, further supporting the market's rise.

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The Sensex and Nifty are expected to continue their upward trend, with the domestic currency also expected to strengthen further. However, the market's prospects will depend on various factors, including the finalization of the US-Iran agreement and the impact of the decline in crude oil prices on the economy.