Sensex, Nifty Rally as Brent Crude Drops Below $73

Indian equity benchmarks opened sharply higher on Thursday, with the Sensex climbing 440 points and the Nifty rising 138 points, as Brent crude slid below $73 a barrel for the first time in weeks.

The 30-share BSE Sensex traded at 77,435.76 in early deals. The NSE Nifty 50 reached 24,147.60. Brent crude was down 1.7% at $72.49 a barrel, extending a decline that has erased most of the gains from the recent Middle East conflict.

"The biggest positive for India is Brent crude falling to below $73 level," VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said.

InterGlobe Aviation, Maruti, Mahindra & Mahindra, UltraTech Cement, State Bank of India and Hindustan Unilever led the Sensex winners. Power Grid, Titan, Infosys and Bharat Electronics lagged.

Asian markets were broadly higher. South Korea's Kospi jumped over 5%. Japan's Nikkei 225 rose nearly 4%. Shanghai's SSE Composite edged up. Hong Kong's Hang Seng slipped.

"Crude oil prices have extended their recent decline. Oil has now erased most of the gains recorded during the recent Middle East conflict as concerns over supply disruptions have eased, geopolitical risk premiums have unwound and global supply conditions have continued to improve," Ponmudi R, CEO of Enrich Money, said.

US markets ended subdued in the prior session.

Foreign Institutional Investors sold equities worth Rs 1,843.40 crore on Wednesday, exchange data showed.

The drop in crude prices reduces input costs for oil-dependent sectors like aviation, paints, and FMCG, and eases pressure on India's current account deficit. The rally in rate-sensitive stocks suggests markets are pricing in a more favorable macro backdrop, though FII selling remains a counterweight.