Benchmark indices opened positive on Thursday, tracking record highs on Wall Street, even as a weakening rupee, elevated crude oil prices, and persistent foreign selling kept sentiment cautious. The Sensex, which closed at 74,608.98 on Wednesday, opened at 74,947.12 and was trading at 74,909.71, up 300.73 points or 0.40 per cent, as of 9.17 AM. The Nifty 50, which ended the previous session at 23,412.60, opened at 23,530.25 and climbed to 23,561.50, gaining 148.90 points or 0.64 per cent.
Wall Street’s overnight rally was driven by chipmakers, with Nvidia surging 2.29 per cent to become the first company to touch a $5.5 trillion market capitalisation. Cisco jumped 18 per cent after hours on an earnings beat. Asian markets followed suit, with Japan’s Nikkei gaining over 320 points and South Korea’s Kospi rising more than 1.2 per cent. Investors are closely watching a possible Trump-Xi summit for trade cues.
On the Nifty 50, led gainers, surging 7.01 per cent to ₹1,420.70. rose 3.13 per cent to ₹2,576.10, gained 1.66 per cent to ₹306.50, advanced 1.38 per cent to ₹1,761.70, and added 1.34 per cent to ₹1,813.20. IT stocks dominated the losers’ list, with falling 1.19 per cent to ₹1,129.60, declining 1.06 per cent to ₹2,248.60, and down 1.01 per cent to ₹1,361.10. Infosys slipped 0.61 per cent to ₹1,116.20, while Dr. Reddy’s edged lower 0.24 per cent to ₹1,262.30.
“IT will continue to be on the back foot due to the Anthropic shock,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd. Pharmaceuticals, by contrast, are seen as better insulated. “Pharmaceuticals will be a safe bet since demand is inelastic and this export sector will benefit from rupee depreciation,” he added.
The rupee hit a fresh record low of ₹95.80 against the dollar, weakening for the fourth straight session from ₹90 at the start of the year. “If crude remains elevated for an extended period, rupee will move to 100,” Vijayakumar warned. Crude oil is currently trading in the $100–$104 per barrel range, reflecting a sustained geopolitical risk premium from the ongoing US-Iran conflict and Strait of Hormuz disruptions. “Any meaningful progress in US-Iran negotiations, or a sustained decline in crude below the $100 mark, could potentially trigger a relief rally,” said Ponmudi R, CEO of Enrich Money.
In the previous session, metals gained 3.35 per cent and defence rose 2.20 per cent, while IT fell over 1 per cent. India VIX rose 0.75 per cent to 19.43, its fourth consecutive session of gains. Technically, Nifty faces resistance at 23,500–23,600, with a stronger barrier at 23,900–24,000. “A decisive move above 24,000 will be required for bulls to regain stronger control,” said Aakash Shah, Technical Research Analyst at Choice Equity Broking. “The short-term market outlook remains bearish. Level-based trading would be the ideal strategy for day traders,” said Shrikant Chouhan, Head of Equity Research, Kotak Securities.