Stock markets rally for 2nd day on easing crude oil prices

MUMBAI, JUL 2 (PTI): Stock market benchmark indices Sensex and Nifty ended nearly one% higher on Thursday amid softening crude oil prices, following positive developments on the geopolitical front and buying in blue-chip IT stocks.
The 30-share BSE Sensex jumped 579.48 points, or 0.75%, to end at 77,502.12. During the day, it surged 656.29 points, or 0.85%, to 77,578.93. The 50-share NSE Nifty rallied 169.85 points, or 0.71%, to settle at 24,175.70.
From the Sensex pack, Infosys jumped 5.64%, followed by Tech Mahindra (4.32%), Tata Consultancy Services (4.28%) and HCL Tech (4.12%). Bajaj Finserv, Adani Ports, Titan and ICICI Bank were also among the major gainers. Larsen & Toubro, Maruti Suzuki India, Axis Bank and Reliance Industries were among the laggards. Brent crude, the global oil benchmark, dropped 1.45% to USD 70.53 per barrel.
India and Japan on Thursday unveiled a raft of landmark initiatives, including an economic partnership framework and defence pact to co-develop military hardware, following summit talks between Prime Minister Narendra Modi and his Japanese counterpart Sanae Takaichi. The major outcomes from the meeting included a declaration on economic security, a joint statement for cooperation in the field of artificial intelligence and a document to bolster engagement in the energy supply chain.
“Indian equities extended their winning streak despite pressure in global markets, where technology stocks dragged overseas indices lower. Easing energy prices and fresh India-Japan agreements in strategic areas such as AI, defence technology and energy security helped sustain domestic market optimism,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
The global tech sell-off intensified as chip stocks slumped across Asia, with Korean stocks tumbling 8% as AI jitters triggered a sharp correction, reviving concerns that the blistering rally in artificial intelligence shares this year may have gone too far, too fast, he added.
Meanwhile, passenger vehicle sales in the country are estimated to have grown nearly 25% in June to about 4 lakh units, led by Maruti Suzuki, Tata Motors PV and Mahindra & Mahindra.
In Asian markets, South Korea’s Kospi tumbled 7.89%, Japan’s Nikkei 225 index declined 2.47% and Shanghai’s SSE Composite index dropped 2.03%, while Hong Kong’s Hang Seng index ended 0.76% higher.
Markets in Europe were trading in positive territory. US markets ended lower on Wednesday.
“Indian markets ended higher as easing tensions around the Strait of Hormuz pushed crude prices lower, while dovish remarks from the Fed Chair reinforced expectations of moderating inflation and a supportive global rate environment,” Vinod Nair, Head of Research, Geojit Investments Limited, said.