Sensex Closes 109 Points Higher as Nifty Crosses 24,050 Mark

The Indian equity markets ended the session in the green despite significant intraday volatility during the Sensex monthly expiry. While the benchmark indices erased much of their afternoon surge, the Nifty 50 managed to sustain its position above the critical 24,050 level.

The Sensex recorded a modest gain of 109 points to settle at 77,100.47, while the Nifty 50 rose by 34 points to close at 24,056. The trading session was characterized by high volatility; the indices had previously soared by more than 1% in the afternoon before profit-booking pulled them back.

A notable sign of cooling market anxiety was seen in the India VIX, the volatility index, which declined by 2.5% to stand at 13.05. However, the broader market sentiment was somewhat muted, with the Nifty Smallcap 100 and Nifty Midcap 100 indices slipping into the red by up to 0.5%.

Sectoral Performance and Top Gainers

The automobile sector emerged as the clear leader of the day, with the Nifty Auto index jumping over 2%. This momentum was driven by significant gains in major auto players: Mahindra & Mahindra (M&M) and Maruti Suzuki both saw their shares rise by nearly 4%.

In the aviation sector, IndiGo was the standout performer, with its shares jumping 5% to lead the Sensex gainers. Banking stocks also provided support, as State Bank of India (SBI), ICICI Bank, and Kotak Mahindra Bank each rose by approximately 1%. Conversely, the Nifty Metal index declined by over 1%, and Power Grid shares led the laggards, falling more than 2%.

Global Factors: The Oil Price Influence

The primary catalyst for the day's positive movement was a sharp decline in global oil prices. Following a peace deal between the US and Iran, stranded tankers exited the Strait of Hormuz, bringing oil prices back to pre-war levels.

This development provides significant relief to the Indian economy, as oil prices had previously surged as high as $120 per barrel and remained consistently above $100 per barrel since the Middle East conflict escalated in February. The stabilization of the Strait of Hormuz—a vital waterway handling over 20% of the world’s daily oil and gas shipments—is a major positive for domestic inflation and market sentiment.

Market Outlook: What to Expect Next

Despite the intraday fluctuations, experts maintain a constructive outlook for the near term. Dharmesh Shah from ICICI Direct noted that Nifty 50 constituents across banking, capital goods, and auto sectors indicate a potential upside of 5% to 10% from current levels. For the upcoming week, analysts expect the Nifty to head toward the 24,500 mark, with a strong support level established around 23,800.

Key Takeaways

  • Nifty Stability: Despite intraday volatility on the monthly expiry, the Nifty 50 successfully held above the 24,050 mark.
  • Auto Sector Rally: Driven by M&M and Maruti Suzuki, the Nifty Auto index led the market gains with a 2% rise.
  • Oil Price Relief: A diplomatic breakthrough in the Middle East led to a drop in oil prices, providing a macro tailwind for Indian equities.