Indian Stocks Rally as Falling Oil Prices and IT Rebound Lift Sentiment

Key Facts

In a move reflecting the sensitivity of emerging markets to commodity fluctuations, Indian equity indices rose during today's session. This climb was primarily driven by a decline in crude oil prices, which reduces inflationary pressures on the import-dependent Indian economy. The session also witnessed a significant rebound in information technology sector stocks, boosting investor sentiment and pushing major indices into positive territory.

This positive performance comes at a time when recent economic data showed resilience in India's industrial activity, with industrial production growing by 5.1% year-on-year per market data released on June 29, 2026. Compared to regional peers, the Nifty 50 outperformed several Southeast Asian benchmarks during this session, benefiting from the retreat in Brent crude which eases India's current account deficit.

Traders should closely monitor Nifty 50 levels as these movements occur amid anticipation of influential global economic data. Looking at the economic calendar, Indian markets may be influenced by the Manufacturing PMI results from China, which stood at 50.6 on June 30, 2026, providing signals on regional demand recovery. Energy prices remain the primary catalyst for the near-term trend.