Sensex and Nifty Rally Above 24,000 as Easing Crude Prices Fuel Market Resilience

Sensex and Nifty Rally Above 24,000 as Easing Crude Prices Fuel Market Resilience​

Benchmarks Sensex and Nifty staged a solid recovery from early lows on June 17, building upon a three-day rally. This upward trend is significantly fuelled by declining crude oil prices following the reported developments related to the US-Iran peace deal. The market saw distinct strength across key indices despite ongoing global uncertainties.

Market Performance and Index Levels​

The Sensex recovered impressively, rising 300 points from its day's low. Trading strong at 09:45 am, the Sensex stood at 77,061.37, marking a gain of 252.89 points or 0.33%. Concurrently, Nifty maintained momentum, trading above the key psychological barrier of 24,000. The Nifty index was recorded at 24,061.60, rising by 72.45 points or 0.3% in early trading. Among the constituent stocks, approximately 2,101 shares advanced, while 1,008 declined and 162 remained unchanged.

The Impact of Easing Crude Oil Prices​

A primary driver supporting the market surge is the stabilization and easing seen in crude oil prices. Brent crude futures remained relatively stable at around $79 a barrel. This follows previous sessions where the price had dropped 5.1%, closing at its lowest level since March 2. The moderation in energy costs has provided a strong underlying support structure for equity markets.

Focus on US Federal Reserve Policy​

Investors remain keenly focused on the forthcoming policy decision by the U.S. Federal Reserve, which is scheduled later today. This announcement will offer critical clues regarding the central bank's future trajectory concerning interest rates. The market consensus suggests that the Fed is likely to maintain unchanged interest rates. This expectation is partly due to concerns surrounding a potentially hawkish tone from new Chair Kevin Warsh at his initial policy meeting.

Technical Indicators and Bullish Momentum​

Analysts are monitoring key technical levels to gauge the sustained strength of the rally. A fundamental prerequisite for maintaining current bullish momentum is that the Nifty index must remain above the 24,000 mark. As long as this technical support level holds firm, experts believe the market has the capacity to sustain its upward trend.