Nifty Rises 100 Points, Indicating a Strong Start for Sensex and Nifty Amid Asian Market Rally and Stable Crude Prices Fuelled by Artificial Intelligence Optimism

Indian Equity Markets Poised for Gains as Global Cues Remain Positive

The Indian equity market is expected to open on a positive note on Thursday, with the GIFT Nifty trading around 23,550 in early trade, up 126 points or 0.54 percent. This indicates a firm start for benchmark indices after Wednesday's volatile but positive close.

The positive indication comes amid strong global equity cues led by an AI-driven rally in Asian and US markets. Despite concerns over elevated crude oil prices, persistent foreign fund outflows, and weakness in the rupee, domestic investors are likely to welcome the positive sentiment.

Benchmark Indices Snap Four-Day Losing Streak

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Benchmark indices had snapped a four-day losing streak on Wednesday after a volatile session. The Sensex ended 50 points higher at 74,609, while the Nifty closed above the 23,400 mark at 23,413. Gains in metal, oil-linked, and select heavyweight stocks helped offset weakness in IT and auto shares.

Broader Markets Outperform

Broader markets continued to outperform, with the Nifty Midcap 100 index gaining 0.77 percent and the Smallcap 100 index rising 0.31 percent. Market breadth remained firmly in favor of advances.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Wall Street Benchmarks End at Fresh Record Highs

Wall Street benchmarks ended at fresh record highs, driven by a rally in AI-linked technology stocks despite concerns over sticky US inflation and expectations of prolonged higher interest rates. The Nasdaq Composite surged 1.2 percent to close at a record 26,402.34, while the S&P 500 gained 0.58 percent to finish at another all-time high of 7,444.25. The Dow Jones Industrial Average slipped marginally by 0.14 percent.

Chipmakers and AI-Related Megacap Technology Stocks Lead the Rally

Chipmakers and AI-related megacap technology stocks led the rally. Six of the "Magnificent Seven" AI-linked stocks rose between 1.4 percent and 3.9 percent. Morgan Stanley also raised its year-end S&P 500 target to 8,000 from 7,800, citing strong corporate earnings momentum.

Asian Markets Extend Positive Momentum

Asian markets extended the positive momentum on Thursday morning. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.2 percent, hovering near record highs hit last week. Japan's Nikkei climbed to a fresh all-time peak. South Korea's Kospi jumped 1.7 percent, taking its gains for 2026 to nearly 88 percent amid continued AI-driven optimism.

Investor Focus Remains on US-China Meeting

Investor focus also remained on the high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing, where discussions are expected to cover trade, the Iran conflict, and broader geopolitical issues.

Oil Prices Steady After Recent Swings

Oil prices steadied after recent sharp swings. Brent crude traded near $105.76 a barrel in early trade, while US West Texas Intermediate crude hovered around $101.14 a barrel. Crude prices remain significantly above pre-war levels due to ongoing concerns over the Iran conflict and potential disruptions around the Strait of Hormuz.

Elevated Crude Prices Remain a Major Macro Concern

Elevated crude prices continue to remain a major macro concern for India, contributing to inflation worries and pressure on the rupee. The Indian currency had hit a fresh record low of 95.80 against the US dollar in Wednesday's trade.

Foreign Institutional Investors Remain Net Sellers

Foreign institutional investors continued to remain net sellers on Wednesday, offloading equities worth Rs 4,703 crore. Domestic institutional investors, however, continued to absorb part of the selling pressure with purchases worth Rs 5,869 crore. So far in 2026, FIIs have sold shares worth Rs 2.61 lakh crore, while DIIs have bought equities worth Rs 3.26 lakh crore.

Ponmudi R's Outlook on Indian Markets

Ponmudi R, CEO of Enrich Money, said Indian markets are expected to trade with a cautious undertone despite intermittent optimism around US-Iran negotiations. According to him, crude oil prices remain elevated due to sustained geopolitical risk premium and concerns over supply disruptions linked to the Strait of Hormuz. He added that continued weakness in the rupee and persistent FII selling remain key drags on sentiment.

Nifty Remains Range-Bound

Ponmudi said Nifty remains range-bound with support near 23,300 and resistance around 23,500-23,600, while a move above 24,000 would be needed to improve sentiment.

India Bans Sugar Exports

In another major development, India on Wednesday banned sugar exports with immediate effect until September 30, 2026, or until further orders, as the government attempts to rein in domestic prices amid concerns over weaker sugarcane yields and tightening supplies.