Benchmark indices opened marginally higher on Thursday, extending their gains after the Reserve Bank of India (RBI) kept interest rates unchanged, as easing crude oil prices and hopes of a diplomatic breakthrough in the Middle East supported investor sentiment.
At 9:21 am, the BSE Sensex was up 186.23 points, or 0.24%, at 78,767.23, while the NSE Nifty50 gained 9.95 points, or 0.04%, to 24,634.60.
Markets also drew support from lower oil prices. Brent crude slipped below the $80-a-barrel mark to $79.34, while WTI crude traded at $75.01, as investors assessed progress in Iran-Oman talks that could pave the way for a broader U.S.-Iran peace deal. Softer crude prices are positive for India as they ease inflationary pressures and reduce the country’s import bill.
Despite the positive start, the broader market remained mixed. The Nifty Smallcap 100 gained 0.23%, while the Nifty Midcap 100 slipped 0.20%, suggesting investors remained selective after the recent rally. India VIX eased 0.35%, indicating lower volatility.
Among sectors, nine of the 16 major indices traded higher. Nifty IT rose 0.31%, extending its recent recovery, while pharma gained 0.23%, media advanced 0.15%, chemicals climbed 0.59% and oil & gas added 0.16%. PSU Bank also edged up 0.11%. On the other hand, Nifty Auto declined 0.58%, Realty slipped 0.54% and Financial Services Ex-Bank fell 0.14%.
Stock-specific action remained mixed. ITC, Kotak Mahindra Bank, Bajaj Finserv, NTPC, SBI, Power Grid and Asian Paints were among the early gainers on the Sensex, while Maruti Suzuki, Titan and HDFC Bank traded lower.
The market is also digesting Wednesday’s RBI monetary policy, where the central bank kept the repo rate unchanged, raised its FY27 GDP growth forecast and reiterated its commitment to the inflation target. Analysts expect the focus to gradually shift back to earnings and global developments.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the RBI policy largely met expectations and is unlikely to alter the market’s near-term trajectory.
“The August monetary policy, which came on expected lines, didn’t influence the market trend. The brief message from the policy is that a rate hike is some time away, and therefore, interest elastic sectors are unlikely to be influenced by interest rates in the near-term. However, there are interest elastic sectors like financials and autos which are doing well due to other fundamental factors.”
He said corporate earnings continue to provide support to the market.
“The Q1 results of financials, particularly NBFCs and automobiles, signal sustained growth driven by buoyant demand conditions. Strong sectors like pharmaceuticals and telecom have reported good results with indications of better times ahead.”
On foreign flows, Vijayakumar said while FIIs have turned buyers recently, sustained inflows may remain limited.
“Even though FIIs have been buyers recently, it is yet to become a strong sustainable trend. FIIs may continue to invest in small amounts, but big sustained FII inflows are unlikely since U.S. bond yields continue to remain high and may rise further.”
