Sensex jumps 626 points, Nifty above 24,650 as crude oil slips below $80

Markets close on a strong footing

Indian stock markets ended Tuesday's session with robust gains, as the BSE Sensex zoomed 626 points and the NSE Nifty climbed past the 24,650 mark. The rally was largely driven by a sharp decline in global crude oil prices, which slipped below the $80 per barrel threshold for the first time in months.

Benchmark indices opened higher and maintained momentum through the day, with buying visible across banking, auto, and IT stocks. The 30-share Sensex settled at a fresh closing high, while the broader Nifty too logged solid gains, reflecting improved investor sentiment.

Crude oil tailwind

The drop in crude prices came as a major relief for import-dependent India, which relies on overseas purchases to meet nearly 85 per cent of its oil needs. Lower oil prices ease inflationary pressures and trim the country's import bill, a key factor that analysts said underpinned the market's upward move.

Global benchmarks also traded firm, with Asian peers closing higher, adding to the positive mood on Dalal Street. "Falling crude is a big positive for India's macros," said a market analyst, though the person declined to be named. "It helps narrow the current account deficit and supports corporate margins."

Sectoral performance

Among sectoral indices, auto stocks were the standout performers, riding on expectations of lower input costs. Banking and financial stocks also saw strong buying, while midcap and smallcap shares outperformed the benchmarks, indicating broad-based participation.

Oil marketing companies, which benefit directly from softer crude, were in focus with notable gains. On the flip side, oil exploration and production stocks witnessed some profit booking after the price slide.

Investor wealth swells

The day's rally added over ₹3 lakh crore to investors' wealth, with the total market capitalisation of BSE-listed companies crossing a fresh milestone. The advance-decline ratio remained firmly in favour of gainers, as more than two stocks rose for every one that fell.

Foreign institutional investors (FIIs) were net buyers in the cash market, provisional data showed, while domestic institutional investors too remained supportive. The rupee held steady against the US dollar, aided by the softer oil prices.

What's next

Market participants will now turn their attention to the upcoming earnings season and global cues, including US Federal Reserve policy signals. A sustained decline in crude prices and continued FII inflows could keep the momentum going, though analysts advise caution at elevated levels.

All eyes will be on the Reserve Bank of India's monetary policy meeting later this month, where the central bank's stance on interest rates could set the tone for markets in the near term.