Sensex Gains 266 Points as IT Rally Offsets Oil Surge; Nifty Above 24,100

For equity investors, Thursday’s session presented a stark contrast: a strong rally in IT heavyweights like Infosys and TCS alongside a surge in oil prices that could stoke inflation and squeeze corporate margins. The Nifty held above 24,100, suggesting that domestic flows and sectoral rotation are overriding macroeconomic headwinds—for now.

Indian equity benchmarks started Thursday’s session on a firm note, with the Nifty 50 reclaiming the 24,100 mark and the Sensex advancing over 260 points. At 9:23 AM IST, the Sensex traded at 77,451.97, up 266.54 points or 0.35%, while the Nifty held at 24,146.95, a gain of 68.45 points or 0.28%. The rally was broad-based but concentrated in pockets: the Nifty Consumer Durables index surged 1.74% and the Nifty IT index jumped 1.49%, followed by gains in Auto, Media, Metal, Pharma, and Telecom. On the flip side, PSU Bank and Realty indices traded in the red, underscoring a rotation out of rate-sensitive sectors.

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Ajay Bagga, a banking and market expert, noted that Brent crude has rocketed past $85.25-$85.45 per barrel, extending a massive 12% rally for the week at the time of his comment.

The backdrop is one of escalating geopolitical risk. President Trump’s announcement of a strict U.S. naval blockade on Iranian ports, coupled with Tehran’s retaliatory closure of the Strait of Hormuz, has jolted energy markets. Ajay Bagga, a banking and market expert, noted that Brent crude has rocketed past $85.25-$85.45 per barrel, extending a massive 12% rally for the week at the time of his comment. For India, which imports over 85% of its crude oil needs, a sustained spike threatens to widen the current account deficit, stoke inflation, and erode corporate margins. Yet the equity market largely brushed off these headwinds, suggesting that domestic institutional flows, strong earnings expectations—especially from IT majors—and a dovish interpretation of U.S. inflation data are providing a floor.

The IT sector’s outperformance likely reflects multiple tailwinds: a potential depreciation of the rupee against the dollar, which boosts the rupee value of export earnings, and a resilient demand environment for digital services. Consumer durables gains point to sustained urban demand, possibly linked to summer season spending and promotional activity. Meanwhile, gold’s steadiness at $4,035.03 per ounce signaled that markets are pricing in a patient Federal Reserve after softer-than-expected U.S. inflation data, which reduces the urgency for rate hikes—supportive for emerging market assets.