Indian benchmark indices surged for the third straight day, closing sharply higher on Thursday. The BSE Sensex climbed around 1.21%, adding approximately 1,000 points to settle near 83,755, while the NSE Nifty50 surged about 1.21%, rising roughly 304 points to end around 25,549 . This rally boosted market capitalization by nearly ₹3.33 lakh crore, reaching ₹457 lakh crore .
Key drivers behind the rally included:
- Weakening U.S. dollar, pressured by concerns over the U.S. Federal Reserve’s independence and prospective leadership changes, which helped boost metal and export-linked stocks .
- De-escalation of Middle East tensions—namely a tentative Israel‑Iran ceasefire—relieved safe-haven demand and lifted global risk sentiment .
- Declining oil prices, which eased inflation concerns and refined market outlook on input costs .
Sector performance showed broad-based strength: nine of the 13 major sectors posted gains, with metal stocks outperforming—Nifty Metal index rose about 2.3%, supported by a softer dollar making dollar-denominated assets cheaper . Financials, especially banks, also led the charge: Nifty Bank and Financial Services indices jumped around 1–1.5%, helped by optimism around credit growth, funding costs, and upcoming IPO activity in the financial sector .
Top movers of the day included:
- SMS Pharma, which soared over 5% after the U.S. FDA approved one of its manufacturing facilities .
- KNR Constructions, up about 3% following a ₹4,800 crore contract win .
- Reliance Industries, increased 1–2% on positive earnings expectations .
- Defence stocks like Bharat Electronics, HAL, and Bharat Dynamics rose 1–2%, fueled by optimism over global defense spending .
Currency and commodities recap: The Indian rupee strengthened about 0.4% to ₹85.70 per USD, hitting a two-week high amid the dollar’s weakening . Precious metals declined—gold fell sharply by ₹1,600–1,630 per 10g—as easing geopolitical tensions lowered safe-haven demand .
Looking ahead, market participants are watching the expiry of monthly derivatives contracts, expected to introduce short-term volatility. They’re also closely monitoring global factors like U.S. Fed policy signals, crude oil movements, and corporate earnings that could influence trends . Additionally, a rising supply of IPOs and secondary offerings—nearly $1.75 billion worth scheduled this week—may test market demand amid stretched valuations .
Overall, Thursday’s session was marked by strong investor sentiment, driven by easing global risks, currency support, and favorable sector rotation—particularly into financials, metals, and pharmaceuticals.
