Indian stock market benchmarks Sensex and Nifty extended their rally for the fourth consecutive session on Wednesday, driven by a decline in crude oil prices and gains in IT stocks.
Market Performance
The 30-share BSE Sensex climbed 271.61 points to 77,080.09 in early trade, while the 50-share NSE Nifty advanced 55.35 points to 24,044.50, reclaiming the 24,000 mark.
Top Gainers and Losers
Among the Sensex firms, Trent, Infosys, Tech Mahindra, Tata Consultancy Services, HCL Tech, and Eternal were the top gainers. On the other hand, Axis Bank, Bajaj Finance, NTPC, and Adani Ports were among the laggards.
Impact of Falling Crude Oil Prices
Brent crude, the global oil benchmark, traded 0.49% lower at USD 78.44 per barrel, near a three-month low. Ponmudi R, CEO of Enrich Money, said, “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.”
Global Market Cues
In Asian markets, Japan’s Nikkei 225 index traded 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.
Rajesh Palviya, Head of Research at Axis Direct, noted, “Global cues remain mixed. While optimism surrounding 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.” He added that Asian markets are trading mixed, but the sharp fall in Brent crude is a significant positive for India, as lower energy prices improve the inflation outlook, reduce import costs, and support corporate profitability.
FII Activity and Previous Session
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%, to settle at 76,808.48, while the Nifty climbed 135.25 points, or 0.57%, to end at 23,989.15.
