Nifty extends winning streak to fifth day as falling crude, stronger rupee offset Fed concerns

Benchmark indices ended higher for a fifth consecutive session on Thursday, supported by a sharp decline in crude oil prices, a strengthening rupee and easing volatility after the United States and Iran signed a peace framework aimed at ending their three-month conflict.

The BSE Sensex rose 254.36 points, or 0.33%, to close at 77,409.98, while the NSE Nifty 50 gained 82.30 points, or 0.34%, to settle at 24,168. The benchmark indices traded in a narrow range for most of the session before extending gains in the second half.

With Thursday's gains, the Sensex has climbed 2,839.50 points and the Nifty has added 763.50 points over the last five sessions, marking one of the strongest rallies since the outbreak of the US-Iran conflict earlier this year.

The rally came despite a hawkish US Federal Reserve stance that indicated at least one more rate hike later this year. Investors instead focused on the easing geopolitical risk premium, with Brent crude falling 2.23% to $77.78 a barrel.

Rupee strengthens, VIX cools

The positive sentiment was visible across asset classes. The rupee appreciated 14 paise to close at 94.36 against the US dollar, extending its recent gains as lower oil prices improved India's macro outlook.

Meanwhile, India VIX fell nearly 4% to 12.67, indicating that traders were continuing to price out geopolitical risks after the US-Iran agreement.

Foreign institutional investors (FIIs) were net buyers of equities worth ₹101.59 crore on Wednesday, according to exchange data.

Banks, healthcare, aviation stocks shine

Market leadership remained concentrated in rate-sensitive and domestic-facing sectors.

Among Sensex stocks, InterGlobe Aviation, Trent, Bharat Electronics, NTPC, State Bank of India and HDFC Bank emerged as the top gainers.

IndiGo rose 2.78%, benefiting from the sharp decline in aviation fuel-linked crude prices. HDFC Bank gained 1.74%, while SBI advanced 1.56%.

Healthcare stocks also witnessed strong buying interest, with Max Healthcare surging 6.46% to emerge as the top Nifty gainer.

On the sectoral front, Nifty Financial Services rose 0.67%, while healthcare indices outperformed broader markets.

IT remains under pressure

The IT pack was the key drag on the market as investors assessed the implications of higher-for-longer US interest rates.

Infosys fell 2.62% and emerged as the top Nifty loser. Tata Consultancy Services declined 0.92%, Tech Mahindra dropped 1%, and Wipro lost 0.82%.

Analysts said export-oriented technology companies remained vulnerable to concerns over slowing global growth and elevated US interest rates.

"The domestic equities traded within a range, maintaining a positive bias as the initial optimism surrounding the US-Iran peace deal was tempered by hawkish remarks from the US Fed," said Vinod Nair, head of research at Geojit Investments Ltd.

He added that while energy-driven inflation concerns could keep investors cautious, the sustained fall in crude oil prices and moderation in domestic bond yields could help offset inflationary pressures in the second half of FY27.