Stock markets rally for 2nd day on easing crude oil prices, buying in IT firms

Mumbai, Jul 2 (PTI) Stock market benchmark indices Sensex and Nifty ended nearly one per cent higher on Thursday amid softening crude oil prices, following positive developments on the geopolitical front and buying in blue-chip IT stocks.

The 30-share BSE Sensex jumped 579.48 points, or 0.75 per cent, to end at 77,502.12. During the day, it surged 656.29 points, or 0.85 per cent, to 77,578.93.

The 50-share NSE Nifty rallied 169.85 points, or 0.71 per cent, to settle at 24,175.70.

From the Sensex pack, Infosys jumped 5.64 per cent, followed by Tech Mahindra (4.32 per cent), Tata Consultancy Services (4.28 per cent) and HCL Tech (4.12 per cent). Bajaj Finserv, Adani Ports, Titan and ICICI Bank were also among the major gainers.

Larsen & Toubro, Maruti Suzuki India, Axis Bank and Reliance Industries were among the laggards.

Brent crude, the global oil benchmark, dropped 1.45 per cent to USD 70.53 per barrel.

India and Japan on Thursday unveiled a raft of landmark initiatives, including an economic partnership framework and defence pact to co-develop military hardware, following summit talks between Prime Minister Narendra Modi and his Japanese counterpart Sanae Takaichi.

The major outcomes from the meeting included a declaration on economic security, a joint statement for cooperation in the field of artificial intelligence and a document to bolster engagement in the energy supply chain.

“Indian equities extended their winning streak despite pressure in global markets, where technology stocks dragged overseas indices lower. Easing energy prices and fresh India-Japan agreements in strategic areas such as AI, defence technology and energy security helped sustain domestic market optimism,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

The global tech sell-off intensified as chip stocks slumped across Asia, with Korean stocks tumbling 8 per cent as AI jitters triggered a sharp correction, reviving concerns that the blistering rally in artificial intelligence shares this year may have gone too far, too fast, he added.

Meanwhile, passenger vehicle sales in the country are estimated to have grown nearly 25 per cent in June to about 4 lakh units, led by Maruti Suzuki, Tata Motors PV and Mahindra & Mahindra.

In Asian markets, South Korea’s Kospi tumbled 7.89 per cent, Japan’s Nikkei 225 index declined 2.47 per cent and Shanghai’s SSE Composite index dropped 2.03 per cent, while Hong Kong’s Hang Seng index ended 0.76 per cent higher.

Markets in Europe were trading in positive territory. US markets ended lower on Wednesday.

“Indian markets ended higher as easing tensions around the Strait of Hormuz pushed crude prices lower, while dovish remarks from the Fed Chair reinforced expectations of moderating inflation and a supportive global rate environment,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,140.50 crore on Wednesday, according to exchange data. On Wednesday, the Sensex climbed 443.97 points, or 0.58 per cent, to settle at 76,922.64. The Nifty rallied 140.10 points, or 0.59 per cent, to end at 24,005.85.