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Indian equity markets traded in positive territory on Thursday, with the benchmark BSE Sensex rising nearly 200 points in early trade as investors closely monitored the high-stakes summit between U.S. President Donald Trump and Chinese President Xi Jinping. The market rebound came despite continued concerns over elevated global crude oil prices and a weakening Indian rupee.
The Sensex climbed above the 75,000 mark during intraday trade, while the NSE Nifty crossed 23,500, supported by gains in metal, energy, and select banking stocks. Analysts said investor sentiment improved after positive signals from Asian markets and a rally in U.S. technology shares overnight.
Global markets remain sharply focused on the Trump-Xi summit in Beijing, which is expected to address escalating geopolitical tensions, trade concerns, and the ongoing Middle East crisis that has disrupted global oil supply chains. Market participants believe the outcome of the talks could significantly influence crude prices, currency markets, and investor confidence worldwide.
Crude oil prices continued to hover above the $105-per-barrel level amid fears of prolonged disruptions in the Strait of Hormuz, a key global oil transit route. Brent crude traded near $106 per barrel, while U.S. WTI crude remained above $101. Analysts warned that sustained high oil prices could fuel inflationary pressures and widen India’s import bill, given the country’s heavy dependence on crude imports.
Despite the oil-related headwinds, Indian investors showed selective buying interest in sectors expected to benefit from global recovery trends. Shares of energy, infrastructure, and metal companies led the gains, while IT stocks witnessed mixed trading due to concerns over global interest rates and currency volatility.
Market experts noted that the Indian rupee remains under pressure after touching record lows against the U.S. dollar earlier this week. Rising oil prices and expectations of prolonged higher interest rates in the United States have strengthened the dollar globally, creating additional pressure on emerging market currencies including the rupee.
Investors are also watching the Reserve Bank of India’s next policy move amid fears that imported inflation from expensive crude oil could complicate the central bank’s monetary outlook. Bond markets remained cautious as traders assessed the possible economic fallout from continued geopolitical instability and elevated energy prices.
Analysts believe market volatility is likely to persist in the coming sessions as global investors await concrete outcomes from the Trump-Xi discussions. Any signs of easing geopolitical tensions or progress toward stabilizing oil supply routes could provide further support to equity markets worldwide.
