Sensex rises over 375 points, Nifty tops 24,100 in early trade as crude oil prices ease

Benchmark equity indices opened higher on Thursday as easing crude oil prices and optimism over US-Iran talks lifted investor sentiment. IT stocks led the gains, while analysts cited improving macroeconomic conditions, robust auto sales and slowing FII outflows as additional positives.

Mumbai: Market benchmark indices Sensex and Nifty rallied in early deals on Thursday amid softening crude oil prices following positive development on the geopolitical front and buying in blue-chip IT stocks.

The 30-share BSE Sensex climbed 377.40 points to 77,269.54 early trade. The 50-share NSE Nifty rallied 106.70 points to 24,113.25.

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“Qatar has stated that the latest round of indirect US–Iran talks has made ‘positive progress’, keeping hopes of a broader diplomatic resolution alive,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.

From the Sensex pack, Infosys, HCL Tech, Tata Consultancy Services, Tech Mahindra, Eternal and InterGlobe Aviation were among the major winners.

NTPC, Bajaj Finance, Larsen & Toubro and Bharat Electronics were among the laggards.

Brent crude, the global oil benchmark, traded 1 per cent lower at USD 70.79 per barrel.

“There are some positive trends that are providing near-term support and strength to the market. One, crude continues to fall with Brent below USD 71 now. This will further strengthen India’s macros and help in achieving higher growth while keeping inflation in check. “Two, the auto sales numbers in June was strong. This indicates that the demand momentum in the economy continues to be strong,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

He further said that the AI trade in South Korea is weakening as indicated by the 11.5 per cent correction in Kospi last month. This is positive for non-AI markets like India, Vijayakumar noted.

“Fourth, the FII selling is tapering off giving an upper hand to the DIIs (Domestic Institutional Investors),” he added.

Passenger vehicle sales in the country are estimated to have grown nearly 25 per cent in June to about 4 lakh units, led by the likes of Maruti Suzuki, Tata Motors PV and Mahindra & Mahindra.

In Asian markets, South Korea’s Kospi traded over 4 per cent lower, Japan’s Nikkei 225 index declined more than 1 per cent and Shanghai’s SSE Composite index quoted 0.90 per cent down. Hong Kong’s Hang Seng index quoted more than 1 per cent higher.

US markets ended lower on Wednesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,140.50 crore on Wednesday, according to exchange data.

On Wednesday, the Sensex climbed 443.97 points, or 0.58 per cent, to settle at 76,922.64. The Nifty rallied 140.10 points, or 0.59 per cent, to end at 24,005.85.