Sensex Closes 109 Points Higher as Nifty Holds Above 24,050 Mark

The Indian stock market ended the session in the green on Sensex monthly expiry day, despite significant intraday volatility. While benchmark indices erased much of their afternoon gains, the market managed a modest close driven by a rebound in the auto sector and easing global oil prices.

The benchmark Sensex gained 109 points to close at 77,100.47, while the Nifty 50 rose by 34 points to finish at 24,056. The session was marked by high volatility; indices had previously soared by more than 1% in the afternoon before retracing those levels.

A notable sign of stabilizing sentiment was the decline in the India VIX, which measures market volatility. The index dropped by 2.5% to settle at 13.05. However, the broader market showed some weakness, 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 Nifty Auto index was the standout performer of the day, jumping over 2%. This sectoral surge was led by major players like Mahindra & Mahindra (M&M) and Maruti Suzuki, which both saw gains of nearly 4%. InterGlobe Aviation (IndiGo) also emerged as a major leader, with its shares jumping 5% to head the gains on the Sensex.

In the banking and FMCG sectors, State Bank of India (SBI), ICICI Bank, Kotak Mahindra Bank, and Hindustan Unilever (HUL) all posted gains of approximately 1%. Conversely, the metal sector faced headwinds, with the Nifty Metal index declining over 1%, while Power Grid led the laggards with a fall of over 2%.

Global Factors: The Impact of Falling Oil Prices

The positive momentum in the domestic market was significantly bolstered by a sharp decline in global oil prices. Following a peace deal between the US and Iran, stranded tankers exited the Strait of Hormuz, causing oil prices to drop to pre-Iran war levels.

This relief comes after a period of extreme volatility where oil prices had surged as high as $120 per barrel. The Strait of Hormuz is a critical maritime artery, handling over 20% of the world’s daily oil and gas shipments, and its stability is a key driver for Indian macroeconomic sentiment.

Market Outlook: Nifty Targets 24,500

Despite the expiry-day volatility, analysts remain optimistic about the medium-term trajectory of the Indian markets. Experts suggest that various sectors, including banking, capital goods, and auto, currently show a potential upside of 5% to 10% from current levels.

According to Dharmesh Shah from ICICI Direct, the outlook remains positive. Market projections suggest that the Nifty could head toward the 24,500 mark in the coming week, with a strong support level established at approximately 23,800.

Key Takeaways

  • Index Performance: Sensex closed at 77,100.47 (+109 pts) and Nifty 50 ended at 24,056, supported by gains in the auto sector.
  • Oil Price Relief: Stabilisation in the Strait of Hormuz following US-Iran developments led to a significant drop in global oil prices.
  • Bullish Outlook: Analysts expect Nifty to test the 24,500 level in the near term, citing upside potential in banking and auto stocks.