Indian equity benchmarks opened flat on Thursday, consolidating after Wednesday's sharp rebound that saw the Sensex gain 888.68 points and the Nifty rise 264.85 points. The rupee strengthened 13 paise to 95.63 against the US dollar in early trade, supported by positive domestic equity momentum and foreign capital inflows, according to The Times of India. However, gains were capped by a strong dollar index after the US Federal Reserve kept interest rates unchanged.
Rupee Movement and Dollar Index
The rupee opened at 95.59 and settled at 95.63, registering a 13-paise gain from its previous close of 95.76. The currency had gained 6 paise on Wednesday and 17 paise on Tuesday, after advancing 74 paise over the prior two sessions. The dollar index, which measures the greenback against six major currencies, was trading up 0.06% at 101.79, forex traders said. The Fed's decision to hold rates steady kept the dollar elevated, limiting further rupee appreciation.
Oil Prices Retreat After Volatile Week
Oil prices declined on Thursday as crude continued to move out of the Middle East despite the US-Iran war widening beyond primary battlefronts. WTI crude slipped 0.54% to $84.00 a barrel, while Brent crude fell 0.85% to $89.97 a barrel. The drop followed a sharp rebound on Wednesday, when Brent surged 7.91% and WTI gained 6.56%, erasing losses from Tuesday when both benchmarks had fallen about 5% after a brief pause in hostilities.
Asian Markets: Mixed Performance
Asian equities showed signs of stabilising on Thursday, but investor caution persisted after a turbulent week marked by an AI-driven market sell-off, US rate uncertainty and renewed geopolitical tensions. Key benchmarks posted divergent movements:
| Index | Change (points) | Level | % Change |
|---|---|---|---|
| Taiwan Weighted | +666.47 | 40,705.65 | +1.66% |
| South Korea Kospi | +201.22 | 5,864.46 | +3.55% |
| Japan Nikkei 225 | +881.37 | 62,315.56 | +1.43% |
| Hong Kong Hang Seng | -34.84 | 25,773.08 | -0.13% |
| China Shanghai Composite | -12.14 | 3,816.33 | -0.32% |
| China Shenzhen Component | -299.17 | 13,359.28 | -2.19% |
Despite the day's gains, the Nikkei was still headed for a weekly decline of 3%, while the Kospi remained on track for a 12% fall, the report noted.
Microsoft Earnings: Cloud and AI Drive Profit Surge
Microsoft reported a 31% year-on-year jump in net profit for the quarter ended June 30, the source said, driven by continued strength in its cloud computing and artificial intelligence businesses. The tech giant posted net profit of $35.8 billion, while revenue rose 18% to $90 billion. Operating income increased 18% year-on-year to $40.6 billion, and diluted earnings per share (EPS) climbed 32% to $4.81 on a GAAP basis. On a non-GAAP basis, excluding the impact of investments in OpenAI, Microsoft reported net income of $35.3 billion, up 22%, with diluted EPS rising 23% to $4.74.
Indian Market Rebound and Sector Performance
On Wednesday, the 30-share BSE Sensex jumped 888.68 points (1.16%) to settle at 77,654.60, after touching an intraday high of 77,765.49. The Nifty 50 advanced 264.85 points (1.10%) to close at 24,250.20. Among Sensex constituents, Hindustan Unilever led the gains with a 4.70% jump, followed by Infosys (+4.50%). Other gainers included Trent, Larsen & Toubro, Tata Steel, Bharti Airtel, Tata Consultancy Services, HCL Tech and HDFC Bank. On the downside, Adani Ports, Mahindra & Mahindra, Power Grid, Bharat Electronics and NTPC were the major laggards, according to the report.
The flat open on Thursday suggests the market is consolidating after the rebound, with investors digesting global cues including oil volatility, Fed policy and AI-related sector shifts. For corporate leaders and investors, the rupee's appreciation on foreign inflows signals renewed confidence in Indian equities, while Microsoft's strong earnings underscore the sustained demand for cloud and AI services. The next key milestones will be the trajectory of oil prices amid Middle East tensions and central bank actions globally.
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