Sensex, Nifty Rise in Early Trade as Crude Oil Prices Fall; FII Inflows Boost Sentiment
Market benchmark indices Sensex and Nifty opened higher on Wednesday, tracking positive global cues and a sharp decline in crude oil prices. Foreign institutional investor (FII) inflows further supported domestic equities.
The 30-share BSE Sensex gained 285 points to trade at 77,944.02 in early trade, while the 50-share NSE Nifty rose 23.25 points to 24,356.10.
Among the top gainers in the Sensex pack were ICICI Bank, State Bank of India, Kotak Mahindra Bank, Eternal, Bajaj Finserv and Asian Paints. On the other hand, Infosys, Bharti Airtel, Larsen & Toubro and Bharat Electronics were among the laggards.
Brent crude, the global oil benchmark, was trading 2.66% lower at $86.22 per barrel.
"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," said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.
He added that while tensions between the United States and Iran remain elevated, recent discussions between Iran and Oman over the Strait of Hormuz have raised cautious optimism that supply-disruption risks could ease.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said, "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."
Wall Street ended higher overnight as lower energy prices and easing treasury yields lifted risk appetite, Radhakrishnan added.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading higher.
Foreign Institutional Investors (FIIs) bought equities worth ₹1,593.53 crore on Tuesday, according to exchange data.
On Tuesday, the Sensex ended higher by 286.98 points, or 0.37%, at 77,656.09, while the Nifty settled at 24,334.55, up 115.50 points, or 0.48%.
