Indian equity markets opened Thursday's trading session on a higher note, supported by increased investor confidence following a significant decline in global crude oil prices. The fall in oil prices contributed to positive sentiment in the domestic market, with the benchmark indices Sensex and Nifty trading in positive territory.
Automobile and aviation stocks witnessed notable buying interest during the session. Investors believe that lower crude oil prices could have a favourable impact on the operating costs of these industries, potentially improving profitability in the future.
During the session, the BSE Sensex gained more than 366 points to trade above the 77,000 mark. The NSE Nifty also crossed the psychological level of 24,100. Broader market sentiment remained positive, with buying interest visible across most sectors and a large number of stocks trading higher. Investor interest was particularly focused on companies whose businesses are directly affected by energy costs.
Automobile and aviation stocks remained in focus during Thursday's trade. Shares of automobile manufacturers recorded notable gains as lower oil prices are considered favourable for both consumer demand and operating costs. Aviation stocks also attracted investor interest. Fuel is the largest operating expense for airline companies, and the decline in crude oil prices is viewed as beneficial for the industry. This expectation supported b buying in airline stocks.
According to analysts, if crude oil prices remain subdued, the financial performance of companies in these sectors could benefit in the coming months.
Banking and financial stocks also contributed to the market's gains. Shares of major banks and non-banking financial institutions traded higher, supporting overall market sentiment. Experts believe the financial sector continues to attract investor interest due to domestic economic stability, b credit growth, and improving investor confidence.
Although the overall market remained positive, selective profit booking was observed in some stocks. Shares of certain information technology, power, and consumer sector companies traded under pressure. According to analysts, some investors chose to book profits following the recent market rally, resulting in limited declines in select stocks. However, the weakness in these counters did not alter the broader positive direction of the market.
