Sensex, Nifty rise as crude prices ease and IT stocks rally

Benchmark indices Sensex and Nifty opened higher on Wednesday, extending gains for the fourth consecutive session. Falling crude oil prices and strong buying in IT stocks supported investor sentiment, while global market cues remained mixed amid developments surrounding US-Iran relations.

Mumbai: Stock market benchmark indices Sensex and Nifty climbed in early trade on Wednesday following a decline in crude oil prices and a rally in IT firms.

Extending its rally to the fourth day running, the 30-share BSE Sensex further climbed 271.61 points to 77,080.09 in opening trade. The 50-share NSE Nifty advanced 55.35 points to 24,044.50.

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From the 30-Sensex firms, Trent, Infosys, Tech Mahindra, Tata Consultancy Services, HCL Tech and Eternal were among the biggest winners.

Axis Bank, Bajaj Finance, NTPC and Adani Ports were among the laggards.

Brent crude, the global oil benchmark, traded 0.49 per cent lower at USD 78.44 per barrel.

“Crude oil prices have fallen sharply to a nearly three-month low. Falling energy prices are expected to act as a tailwind for the Indian economy, helping contain inflation, improve external balances and support earnings growth across several sectors,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.

In Asian markets, Japan’s Nikkei 225 index quoted higher, while South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index traded lower.

US markets ended mostly lower on Tuesday.

“Global cues remain mixed. While optimism surrounding the US–Iran peace developments pushed the Dow Jones to fresh record highs, weakness in technology stocks dragged the Nasdaq lower, leaving the S&P 500 marginally in the red,” Rajesh Palviya, Head of Research, Axis Direct, said.

Asian markets are trading mixed this morning, although the sharp fall in Brent crude to around USD 78.6 per barrel is emerging as a significant positive for India, as lower energy prices improve the inflation outlook, reduce import costs and support corporate profitability, he added.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 749.18 crore on Tuesday after a day’s breather, according to exchange data.

On Tuesday, the Sensex jumped 544.15 points, or 0.71 per cent, to settle at 76,808.48. The Nifty climbed 135.25 points, or 0.57 per cent, to end at 23,989.15.