Indian stock markets, including the Sensex and Nifty, opened higher, buoyed by a significant drop in crude oil prices and a positive global equity trend, providing a crucial tailwind for domestic investor sentiment.
Sensex and Nifty50 Performance: Key Market Highlights Today
- Indian benchmark indices, Sensex and Nifty, opened higher, mirroring positive global equity trends.
- A sharp decline in Brent crude oil prices, trading 2.66 per cent lower at $86.22 per barrel, is identified as a key positive catalyst for the domestic market.
- Foreign Institutional Investors (FIIs) contributed to the positive sentiment by buying equities worth Rs 1,593.53 crore on Tuesday.
- The retreat in oil prices is seen as a meaningful near-term tailwind, easing crude-driven inflation worries that have dominated sentiment.
- Global markets, including those in South Korea, Japan, Shanghai, Hong Kong, and the US, also ended in positive territory.
Market benchmark indices Sensex and Nifty were trading higher in early trade on Wednesday, in tandem with a positive trend in global equities, amid a sharp decline in crude oil prices.
Foreign fund inflows also added to the positive trend in the domestic markets.
The 30-share BSE Sensex climbed 285 points to 77,944.02 in early trade.
The 50-share NSE Nifty was up 23.25 points to 24,356.10.
Market Movers and Global Cues
Among the 30 Sensex firms, ICICI Bank, State Bank of India, Kotak Mahindra Bank, Eternal, Bajaj Finserv and Asian Paints were among the major winners.
Infosys, Bharti Airtel, Larsen & Toubro and Bharat Electronics were among the laggards.
What Experts Say
"Crude oil has emerged as the key positive catalyst.
"WTI has fallen more than 6 per cent over the past two sessions to trade in the $80-81/per barrel range.
"For domestic markets, the retreat in oil prices provides a meaningful near-term tailwind after crude-driven inflation worries dominated sentiment over the past several weeks," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
While tensions between the US and Iran remain elevated, recent developments surrounding discussions involving Iran and Oman over the Strait of Hormuz have raised cautious optimism that supply-disruption risks could ease, he added.
"The most significant development for domestic markets is the continued decline in crude oil prices.
"Brent crude has eased to around $85.5 per barrel, extending its retreat from last week's peak near $94, as concerns over supply disruptions continue to recede," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.
International Market Performance and FII Activity
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index quoted higher.
US markets ended in positive territory on Tuesday.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,593.53 crore on Tuesday, according to exchange data.
