Indian Markets Close Flat as Falling Oil Prices Offset Profit-Taking

Indian benchmark indices ended Thursday's trading session with modest gains, as falling crude oil prices supported sentiment but profit-taking in information technology and metal stocks limited upside momentum. The 30-share BSE Sensex rose 109.25 points, or 0.14%, to close at 77,100.47, while the 50-share NSE Nifty climbed 34.35 points, or 0.14%, to end at 24,056. The indices hit intraday highs—with the Sensex reaching 77,803.18 and Nifty touching 24,261.60—before retreating in afternoon trading as investors booked profits.

The primary driver of the day's gains was a sharp decline in crude oil prices to pre-Iran-conflict levels, with Brent crude falling 1.26% to $72.81 per barrel. This drop, attributed to easing geopolitical tensions and improved global supply conditions following an accord to end the U.S.-Israeli conflict with Iran, bolstered the Indian rupee, which strengthened to 94.3950 against the dollar—a 0.3% appreciation. The positive sentiment also benefited from rallies across Asian markets, with South Korea's Kospi jumping 5.42%, Japan's Nikkei 225 climbing 4.61%, and Shanghai's SSE Composite closing marginally higher, though Hong Kong's Hang Seng settled lower.

The auto sector emerged as the day's star performer, with the BSE Auto index gaining over 2%. Major gainers included InterGlobe Aviation, which jumped 4.82%, Mahindra & Mahindra, Maruti Suzuki, State Bank of India, ICICI Bank, and Hindustan Unilever. Conversely, shares of Power Grid, Bharat Electronics, Tech Mahindra, Infosys, and Bharti Airtel declined. The India Volatility Index (VIX) fell nearly 5% to around 13.94 levels, suggesting moderating market anxiety.

Market analysts attributed the muted close to competing forces: while the oil price collapse provided fundamental support to India's import-dependent economy and improved the current account outlook, profit-taking erased early gains. Vinod Nair, Head of Research at Geojit Investments, noted that the market "concluded the day flat, as early intraday gains were offset by profit booking," highlighting how the early strength—when the Sensex had surged nearly 1% intraday—could not be sustained. The rise marked the second consecutive day of gains, following Wednesday's 1.04% jump in the Sensex and 0.83% climb in Nifty.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,843.40 crore on Wednesday, continuing a pattern of selling despite the day's gains. The rupee's strength and improved oil dynamics are expected to provide longer-term support, though markets remain cautious over potential U.S. Federal Reserve rate hikes and their impact on emerging market flows. Indian markets will remain closed on Friday, June 26, 2026, for the Muharram holiday.