Sensex, Nifty Rally As Automakers Surge Amid Oil Price Slide

Indian shares ended a highly volatile session notably higher on Thursday as oil prices extended recent declines on fuel demand concerns, helping ease worries around imported inflation.

Oil prices were down around 2 percent in European trade to extend losses from the previous session as Fed Chair Jerome Powell acknowledged the possibility of a recession, API data showed a hefty climb in U.S. crude oil supplies and the Biden administration pushed for a series of measures to address high gasoline prices.

Investors also reacted positively to the RBI's MPC meeting minutes laying stress on the direction of the inflation rather than its level.

The benchmark S&P BSE Sensex ended a choppy session up 443.19 points, or 0.86 percent, at 52,265.72 despite a warning from research firm Nomura that any potential contraction in the world's biggest economy could affect India's growth in the medium term.

The broader NSE Nifty index rallied 143.35 points, or 0.93 percent, to 15,556.65, with automobile, technology and healthcare stocks leading the surge.

Automakers saw broad-based gains amid the recent decline in oil prices. Bajaj Auto, Mahindra & Mahindra, Eicher Motors, Hero MotoCorp and Maruti Suzuki India jumped 4-7 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT