Nifty 50 edged up 0.3% to 22,800 on Thursday as crude prices surged to $105, countering the pull of higher bond yields. BSE data shows the index closed at 22,800, up 70 points from 22,730, marking the firm’s strongest day in three weeks.
Envision Capital founder Nilesh Shah said domestic demand and earnings momentum are supporting equities, noting oil’s jump from $60 to $105 in the last quarter. "For oil to go from $60 to $105 … the markets have still held on, I think, is quite phenomenal," Shah told CNBC‑TV18.
Sohum Asset Managers' CIO Sanjay Parekh highlighted a surprising uptick in first‑quarter earnings across the Nifty, mid‑cap and small‑cap segments, attributing part of the lift to inventory stocking and inflation. "First‑quarter earnings growth across the Nifty, mid‑cap and small‑cap segments had surprised positively," Parekh added.
Digital financial services are a key area, with UPI users currently under half a billion but projected to reach 1.5 billion, Parekh said. He added, "Everyone will be using UPI. All transactions will happen on UPI."
Shah remains wary of large‑cap IT, preferring smaller firms that can benefit from AI contracts. "For a large IT company, a few hundred million rupees of AI‑related contracts may not materially change the growth trajectory… for smaller tiers, the impact could be far greater," he explained.
The market will now focus on upcoming earnings releases from IT and banking giants, with analysts expecting mixed outcomes amid global headwinds and a cautious stance on large‑cap valuations.