Sensex gives up 700-point rally to end higher as profit booking trims oil-led gains
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Indian benchmark indices gave up most of their intraday gains on Thursday as late-session profit booking erased a sharp oil-led rally, although the benchmarks still managed to end in positive territory, extending gains for a second consecutive session.
The BSE Sensex rose 109.25 points, or 0.14%, to close at 77,100.47, while the NSE Nifty 50 gained 34.35 points, or 0.14%, to settle at 24,056. The rally, however, lost steam in the second half after the Sensex had surged as much as 811.96 points to an intraday high of 77,803.18, while the Nifty climbed to 24,261.60 before paring most of its gains.
Oil relief sparks early rally
Markets opened sharply higher after Brent crude prices slipped to around $72.8 a barrel, easing concerns over inflation and India's import bill. Investor sentiment was also supported by positive global cues, with most Asian markets ending higher, while RBI Governor Sanjay Malhotra's recent comments ruling out an immediate rate hike continued to boost confidence. Lower borrowing costs are seen supporting corporate earnings, consumption and valuations.
However, the optimism faded through the afternoon as investors locked in profits ahead of the three-day trading break, with domestic markets remaining shut on Friday for Muharram.
Vinod Nair, head of research at Geojit Investments, said the domestic market ended largely flat as early gains were offset by profit booking.
"While a sharp decline in crude oil prices supported the rupee and provided some cushion, it was insufficient to sustain upward momentum," he said, adding that auto stocks outperformed on softer metal prices, easing supply chain constraints and improving retail demand.
Auto shines; metals, IT under pressure
Sectorally, auto stocks emerged as the biggest gainers, with the Nifty Auto index climbing 2.25%. Financial Services, Bank Nifty, Private Bank, Realty and PSU Bank indices also ended marginally higher.
On the flip side, Metal stocks remained under pressure, dragging the Nifty Metal index down 1.37%, while Nifty IT fell 0.86%. Oil & Gas , Consumer Durables, Financial Services, FMCG and Healthcare indices also ended lower.
Among the Nifty 50 constituents, InterGlobe Aviation rose 4.89%, followed by Mahindra & Mahindra , Maruti Suzuki , Max Healthcare , Tata Consumer Products and Nestle India . ONGC was the biggest loser, falling 2.85%, followed by Hindalco Industries , Power Grid , Tech Mahindra and Bharti Airtel .
The broader market underperformed the benchmark indices. The Nifty Midcap 100 declined 0.55%, while the Nifty Smallcap 100 fell 0.47%, indicating stock-specific profit booking beyond frontline blue-chip counters.
Despite Thursday's sharp intraday reversal, Indian equities ended the holiday-shortened week in positive territory, marking their third consecutive weekly advance — the longest winning streak in seven months and the strongest run so far in 2026. For the week, the Sensex gained about 0.4%, while the Nifty added around 0.2%, supported by easing crude oil prices, RBI measures aimed at supporting the rupee and foreign capital inflows, and improving global risk sentiment.