Sensex, Nifty rise in early trade on global cues, lower oil prices

Indian benchmark indices rallied sharply in early trading on Wednesday, buoyed by strong global market trends and a decline in crude oil prices amid renewed optimism over diplomatic engagement between the United States and Iran.

The 30-share BSE Sensex rose by over 1,400 points in early deals, while the NSE Nifty gained more than 400 points, reflecting broad-based buying across sectors. All Sensex constituents were trading in positive territory, with stocks such as InterGlobe Aviation, Infosys, Tata Consultancy Services, Larsen & Toubro and Bajaj Finance leading the gains.

Investor sentiment was lifted by a drop in global oil prices, with Brent crude trading below the USD 100 per barrel mark. Analysts said the easing of crude prices is particularly favourable for India, given its heavy reliance on energy imports.

Market participants are also factoring in the possibility of renewed diplomatic talks between Washington and Tehran, which has contributed to the recent correction in oil prices and improved risk appetite.

In Asia, key indices including Japan’s Nikkei 225, South Korea’s Kospi, Shanghai’s SSE Composite and Hong Kong’s Hang Seng were all trading higher, tracking positive cues from Wall Street. US markets had ended firmly in the green overnight, led by gains in technology stocks.

Experts noted that hopes of easing geopolitical tensions in the Middle East and a sharp fall in crude prices over recent sessions could support markets in the near term.

On the domestic front, trading resumed after a holiday on Tuesday for Dr B.R. Ambedkar Jayanti. Institutional activity remained mixed, with foreign investors continuing to offload equities, while domestic institutions provided support through net buying.

In the previous session on Monday, Indian equities had ended lower, with the Sensex and Nifty both posting notable declines.

With PTI inputs