Indian market closes up as Sensex gains 138 points at 74,903
The Indian stock market ended a three-day losing streak with a rebound on Thursday, driven by gains in the closing auction session. Analysts warn that higher oil prices and geopolitical tensions may continue to pressure sentiment.
Indian benchmark indices reversed losses to finish positive as trading concluded on Thursday evening. The Sensex rose 138 points, finishing at 74,903, while the Nifty 50 climbed 46 points to reach 23,478. Both markets had been in red prior to the closing auction, which allowed them to recover their intraday downturns. Crude oil prices stayed above $102 per barrel during the session.
Analysts note that despite this relief on Indian exchanges, underlying pressures remain strong. Vinod Nair of Geojit Investments pointed to synchronized monetary tightening as a key development. He highlighted that elevated crude costs and ongoing geopolitical conflicts are driving energy-related inflation. Nair emphasized that upcoming US inflation data will determine the path for interest rates.
Capital outflows from emerging markets face risks from rising global bond yields and potential Yen carry trade unwinds. A stronger Japanese currency could drain funds, particularly if the Bank of Japan raises its rate. The domestic market experienced volatility on this weekly expiry day due to weak signals from Asian neighbors. Despite favorable August equity fund flow numbers and lower SIP stoppage ratios, market sentiment remained cautious amid a depreciating rupee.
