Sensex, Nifty Hold Strong at Midday; Falling Crude, Iran Peace Progress, Auto Rally Keep Bulls in Charge on Thursday

Mumbai, June 25: Domestic benchmark indices maintained a firm grip through Thursday’s midday session, as a sharp fall in crude oil prices toward pre-war levels, continued progress in the US-Iran peace framework and a broad-based rally in auto stocks kept buyers firmly in control for the second consecutive session.  

The BSE Sensex was trading at 77,518.58, up 527.36 points or 0.68%, while the NSE Nifty 50 gained 163.65 points or 0.68% to 24,185.30 as of 11:32 am, building on Wednesday’s 790-point Sensex surge and comfortably holding the 24,000-level reclaimed in the previous session. India VIX continued its descent, falling a further 4.48% to 12.79, its lowest reading in several weeks, signalling a meaningful and sustained reduction in market fear as geopolitical risk premiums unwind. 

Gainers and Losers 

Among the top Nifty 50 gainers at midday, Max Healthcare led the charge with its LTP at ₹1,132, up 4.65% from a previous close of ₹1,081.70, as healthcare stocks continued their multi-session run. Maruti Suzuki surged 4.56% to ₹13,852 from ₹13,248, and IndiGo climbed 4.55% to ₹5,444.30 from ₹5,207.20, both benefiting from the sharp fall in crude oil which is a direct cost tailwind for aviation and auto. Mahindra and Mahindra gained 3.56% to ₹3,173.70 from ₹3,064.50, while Dr Reddy’s Laboratories added 2.23% to ₹1,358 from ₹1,328.40.  

On the losing side, ONGC slipped 1.81% to ₹235.65 from ₹240, as falling crude prices dented upstream oil producers. Titan fell 1.43% to ₹4,261.80 from ₹4,323.80, Coal India shed 1.41% to ₹435.50 from ₹441.75, Power Grid eased 1.29% to ₹287.15 from ₹290.90, and Hindalco declined 1.15% to ₹965.40 from ₹976.60. 

Broad Markets and Sectoral Indices 

In the broader market, the Nifty Next 50 was up 0.79% to 72,629.70, the Nifty 100 gained 0.74% to 25,262 and the Nifty Financial Services index rose 0.78% to 26,945.25, reflecting strong large-cap and financial sector participation in Thursday’s rally. On the weaker side, the Nifty Smallcap 250 barely moved, up just 0.04% to 17,791.20, the Nifty Microcap 250 edged up a thin 0.10% to 25,136.80, and the Nifty Midcap 50 added a modest 0.25% to 17,734.25 which suggested the rally remains more concentrated in large-caps than in the broader market.  

On the sectoral front, the Nifty Auto index was the runaway leader, surging 2.77% to 27,115.70 as falling fuel costs and improving consumer sentiment combined to drive broad-based buying in the segment. Nifty FMCG gained 0.89% to 49,521.25 as consumption plays caught a bid, and Nifty Realty rose 0.92% to 831.10 on improving risk appetite. On the downside, Nifty Metal slipped 0.57% to 12,547.25 as metal prices tracked the softening commodity complex, Nifty CPSE fell 0.84% to 6,692.30 as PSU energy and utility names came under pressure, and Nifty Oil and Gas edged down 0.09% to 11,231.80 as upstream producers sold off in response to declining crude prices. 

Middle East Conflict 

The Trump administration asked the US Congress on Wednesday for $87.6 billion in additional funding, the bulk of it to cover operational costs of the Iran war, even as the Senate joined the House in passing a war powers resolution directing Trump to halt military action which is a largely symbolic but politically significant rebuke that included four Republicans voting against their own president. Trump was also reported to have engaged in a shouting match with Republican Senator Bill Cassidy during a closed-door Capitol Hill lunch, as frustration within the Republican Party over the war’s costs and lack of a clear framework grows visibly ahead of November’s Congressional elections. 

Asian and US Markets 

Asian markets were broadly weak at midday Thursday, with the Hang Seng falling 1.76% to 23,000.57 and Indonesia’s JSX Composite tumbling 3.56% to 5,883.88, while Japan’s Nikkei 225 was a notable exception, surging 4.63% to 72,375.28 on a weaker yen and improved risk sentiment. US markets closed Wednesday on a mixed note, with the Dow Jones gaining 0.35% to 51,848.90 and the NYSE Composite up 0.13%, while the Nasdaq fell 0.43% to 25,476.64 and the S&P 500 edged down 0.10% to 7,358.22 as technology stocks remained under pressure. 

Oil Prices 

Brent crude futures for August delivery fell 40 cents or 0.54% to $73.34 a barrel in early Thursday trade, while US West Texas Intermediate slipped 27 cents or 0.38% to $70.07 a barrel, as stranded tankers resumed movement through the Strait of Hormuz following the initial US-Iran accord. US Energy Secretary Chris Wright confirmed at a forum on Wednesday that flows through the strait were near pre-war levels, with at least 20 million barrels having exited in the preceding 24 hours, though full normalisation will take a few more weeks as the waterway is demined. The speed of oil’s decline has caught markets off guard — Brent had fallen more than $3 on Wednesday alone — with analysts noting that markets are pricing in a faster-than-expected return of Middle Eastern barrels to global supply. 

Thursday’s Opening 

Indian benchmark indices opened Thursday on a positive note, with the BSE Sensex rising 400.73 points or 0.52% to 77,391.95 and the NSE Nifty 50 gaining 127.50 points or 0.53% to 24,149.15 as of 9:22 am, as easing geopolitical tensions and a sharp fall in crude oil prices encouraged buyers to step in from the opening bell. The session got off to a clean, broad-based start, with India VIX falling 3.38% to 12.93, signalling a meaningful reduction in market anxiety. The catalyst was unmistakable: Brent crude extended its decline toward $73 a barrel on Thursday, driven by the resumption of tanker movement through the Strait of Hormuz following the US-Iran ceasefire accord, even as political pressure on the Trump administration from within its own party continued to build in Washington. 

Sources

• nseindia.com
• bseindia.com