The benchmark equity indices closed higher for a second straight session on Thursday, extending the recovery seen on Wednesday after a three-day losing streak.
The NSE Nifty 50 ended 130 points, or 0.53% higher at 24,750, while the BSE Sensex closed 443.79 points, or 0.55% up at 81,442. During the day, the Nifty rose 1.41% to 24,899.85, and the Sensex advanced 1.13% to 81,911.13.
Weak Dollar, Falling US Bond Yields
The market gained support from a weaker US dollar and falling Treasury yields. The dollar index dropped to 98.82, extending a 0.4% decline over the past two days.
A weaker dollar typically benefits emerging markets like India by attracting foreign inflows and supporting the rupee. Meanwhile, US bond yields fell sharply after soft economic data raised hopes of rate cuts. The 10-year Treasury yield declined 2.4% to 4.355%, while the 30-year yield slipped 1.95% to 4.864%.
RBI Rate-Cut Expectations
Investor sentiment also remained upbeat ahead of the Reserve Bank of India's policy decision on Friday. The market is rising on expectations that the central bank will cut the key lending rate by 25 basis points for the third consecutive meeting, boosting liquidity and supporting economic growth.
Return Of FII Buying
Foreign institutional investors turned net buyers after three sessions of selling, purchasing equities worth Rs 1,076.2 crore on Wednesday. Domestic institutional investors continued their buying streak for the 12th straight day, investing Rs 2,566.8 crore.
Decline in Crude Oil Prices
Oil prices dropped nearly 1% after US data showed a higher-than-expected rise in gasoline and distillate inventories, signalling weaker demand. Additionally, Saudi Arabia's price cuts for July crude deliveries added pressure. Brent crude fell to $64.85 per barrel, while WTI dropped to $62.74.
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