The Sensex added more than 1,500 points as crude prices eased and IT shares extended their rally.
Some days the market needs a big reason to rally. On Thursday, it needed only one: oil fell.
The BSE Sensex jumped 1,533.72 points, or 2.11%, to 74,315.61. The NSE Nifty 50 rose 374.65 points, or 1.66%, to 22,997.35, finishing just short of 23,000 after briefly crossing it during the session. It was the strongest day for the benchmarks in four months.
The trigger was crude. Prices fell about 2%, easing some of the fear that has hung over Indian markets for weeks. A day earlier, wholesale inflation data had shown fuel and power costs up nearly 26% from a year ago. For a country that imports most of its oil, every dollar off the barrel helps. It lowers import costs, cools inflation and takes pressure off the rupee. Investors responded quickly.
Who led, who lagged
IT stocks did the heavy lifting again. The Nifty IT index was the best-performing sector, extending a rebound that began with HCLTech’s results earlier in the week. Tech Mahindra rose 4.75% to ₹1,650 on the day of its results. HCLTech also gained.
Banks helped too. ICICI Bank climbed 3.8% to ₹1,389.40. Bharti Airtel and Reliance Industries were among the other big gainers, and because these are among the largest companies in the index, their moves alone lifted the benchmarks sharply.
The day’s biggest loser was a surprise. Nestlé India fell 7.76% to ₹1,275.80, its sharpest drop in a long time, even though it had just reported a 36% jump in profit. Investors focused on management’s warning about rising food and commodity costs. Trent, Adani Enterprises, Shriram Finance and Larsen & Toubro also fell.
Public-sector banks were the weakest sector.
A narrow rally
The Nifty Midcap index fell about 0.4%. The Nifty Smallcap index dropped 1.31%. In other words, while the biggest companies surged, most stocks went the other way.
That pattern usually means institutions were buying a handful of large names rather than investors buying broadly. Foreign funds, which have sold heavily this year, tend to trade the biggest stocks. A short-term shift in sentiment, or simply covering bets against them, can push the index up without much happening across the rest of the market.
It is worth keeping in mind before reading too much into one big day. Broad rallies tend to last. Narrow ones often fade.
The bigger picture
Thursday’s move also showed how much the market depends on oil right now. Indian equities have spent most of 2026 under pressure from high crude prices, a weak rupee and record foreign selling. Any sign of relief on oil gets an outsized reaction.
That cuts both ways. Tensions in West Asia remain unresolved. Attacks on Saudi energy facilities earlier this week pushed prices up before Thursday’s pullback. If oil rebounds, the gains can unwind just as fast as they came.
Earnings will now take over as the main driver. Wipro, Tech Mahindra, Jio Financial Services, HDFC Life and Indian Bank all reported after the close. HDFC Bank reports on Saturday. Markets will be shut on 20 October for Dussehra, and Jio Platforms opens its record IPO on 21 October.
For one afternoon, at least, the mood on Dalal Street was better than it has been in months.
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