FX.co ★ Sensex Advances for 2nd Day

India’s BSE Sensex pared early gains to close slightly higher at 77,100.5 on Thursday, extending the previous session’s advance, as investors trimmed positions in late trade ahead of the long weekend. Sentiment remained underpinned by the ongoing retreat in crude oil prices, supported by signs of progress in US–Iran negotiations and improved shipping activity through the key Strait of Hormuz.

Buying interest was concentrated in banking and automobile counters, while IT and metal stocks underperformed. IndiGo (+4.6%), Mahindra & Mahindra (+4.2%) and Maruti (+3.8%) were among the top gainers. Banks continued to draw support from the RBI’s decision to allow loans against foreign currency deposits: SBI and ICICI Bank each rose 1%, Kotak Mahindra Bank advanced 0.7%, and HDFC Bank added 0.4%.

On the downside, Power Grid (-2.4%), BEL (-1.7%), Tech Mahindra (-1.7%), Infosys (-1.4%) and Bharti Airtel (-1.4%) were the biggest laggards. For the week, the Sensex gained 0.4%. The stock market will remain closed on Friday, June 26, in observance of Muharram.