Indian equities trimmed early gains but remained in positive territory during late morning trade on Thursday, buoyed by a decline in global crude prices and a recovery in the rupee. The Nifty 50 index rose 72 points, or 0.30%, to trade at 23,731.00, while the BSE Sensex added 150 points, or 0.20%, to settle at 75,468.45 by 11:39 a.m. IST. Both benchmarks had opened approximately 0.7% higher before paring some of those gains.
The market’s modest advance comes amid a delicate balance between solid corporate earnings and a challenging macroeconomic backdrop. Elevated oil prices, a weakening rupee, and high U.S. bond yields have weighed on investor sentiment this month. However, a sharp drop in Brent crude—down 5.6% on Wednesday—and a respite in the rupee’s slide provided some relief. Brent crude traded just above $106 a barrel on Thursday, as progress in U.S.-Iran negotiations raised hopes of increased supply.
The rupee strengthened after the Reserve Bank of India intervened by selling dollars through state banks ahead of the market open, according to Reuters. The currency moved closer to the 96 per dollar level, after approaching 97 on Wednesday. The rupee had lost roughly 2.5% over the previous nine sessions, rattling equity investors.
“Markets have gained momentum as investors turn optimistic,” said Aakash Shah, technical research analyst at Choice Broking. VK Vijayakumar, chief investment strategist at Geojit Investments, described the recent moves as a “buy on dips” setup, noting that much depends on crude prices and rupee stability.
Apollo Hospitals shares advanced after the company reported a 36% jump in quarterly net profit to 5.29 billion rupees, driven by increased demand for complex medical procedures and growth in its pharmacy and digital health segments. CEO Madhu Sasidhar told Reuters that all three business units posted strong growth, while CFO Krishnan Akhileswaran said the company would use proceeds from the sale of its fertility business to expand diagnostics and other platforms.
Lenskart Solutions surged after its quarterly revenue climbed 46% year-over-year to 25.16 billion rupees. Brokerages including Jefferies, Goldman Sachs, Morgan Stanley, Emkay, and Motilal Oswal raised their target prices on the stock, which hit its highest level in nearly a month during early trading.
Grasim Industries shares also moved higher after the Aditya Birla Group company reported a narrower standalone loss of 1.63 billion rupees for the March quarter, with revenue climbing 32% from a year ago. Consolidated net profit rose 30.87%, the company said in a regulatory filing.
Ola Electric traded lower, as brokerages remained cautious after the electric two-wheeler maker’s quarterly revenue dropped 56.6% from a year earlier. Concerns about volumes, market share, and cash levels persisted. Emkay noted that Ola’s volume recovery was aided by competitors like Ather running at full capacity, making it harder for investors to fully credit Ola for the rebound.
Despite the day’s gains, analysts warned that the rally may be fragile. Bernstein’s Venugopal Garre pointed to slow foreign institutional investor flows and weak corporate earnings as near-term risks. Companies such as Bosch have cited geopolitical uncertainty as a drag on demand. If crude prices climb again or the rupee resumes its decline, Thursday’s gains could quickly evaporate.
The Nifty’s bounce is seen as a relief rally rather than a clear reversal of the recent downtrend. Traders believe the index needs to hold above 23,700 through the close to stabilize sentiment and attract foreign buyers back to Indian stocks.
