A rebound in information technology stocks amid a sharp fall in crude oil prices, tech-heavy emerging market peers, and a continuing decline in crude oil prices boosted sentiment, helping Indian equities end Thursday’s session higher.
The benchmark Sensex on Thursday ended at 77,502, up 580 points or 0.8 per cent.
Nifty, meanwhile, ended the session at 24,176, a gain of 170 points or 0.7 per cent. The total market capitalisation of BSE-listed stocks rose by ₹3.3 trillion to ₹479 trillion.
The markets in South Korea and Taiwan declined on Thursday amid a sell-off in global chip stocks, as concerns over stretched valuations led investors to take money off the table. Market experts said there has been value buying in Indian tech stocks amid profit-taking in stocks that benefited from the AI trade in other Asian markets.
The Nifty IT index rose by 4.64 per cent and posted its best gain since May 12, 2025.
The Nifty IT index declined 31 per cent in the January-June 2026 period, the steepest decline in the first six months of a calendar year since 2003, amid concerns that AI-driven revenue deflation could intensify over the next few years, potentially bringing the wealth-creation phase for large-cap IT companies to an end.
“Nifty IT index rebounded after four consecutive sessions of decline, supported by easing US inflation concerns and short covering in the domestic market. However, we expect demand commentary to stay soft in 1QFY27, as macro, AI and geopolitical overhangs continue to weigh on discretionary spending and decision-making cycle,” said Siddhartha Khemka ,head of research of Wealth Management of Motilal Oswal Financial Services.
The continuing decline in Brent crude prices also boosted sentiments. Brent crude spot prices were at $71.24 per barrel, a decline of 1.08 per cent. Falling crude prices benefit India, a major importer of crude oil. Going forward, the trajectory of monsoons will determine market movement.
Market breadth was strong with 2,464 stocks advancing and 1,832 declining. Foreign Portfolio Investors (FPIs) were net sellers of ₹312 crore, while domestic institutions were net buyers of ₹1,784 crore.
