Indian stock markets, including the Sensex and Nifty, are extending their rally for the fourth day, buoyed by a significant drop in crude oil prices and robust performance from the IT sector, signalling positive implications for the Indian economy.
Photograph: Shailesh Andrade/Reuters
Sensex and Nifty50 Performance: Key Market Highlights Today
- Indian benchmark indices, Sensex and Nifty, continued their rally for the fourth day, with the Sensex climbing 271.61 points and the Nifty advancing 55.35 points in early trade.
- A sharp decline in Brent crude oil prices to nearly a three-month low at $78.44 per barrel is acting as a significant tailwind for the Indian economy.
- Falling energy prices are expected to help contain inflation, improve external balances, and support earnings growth across various sectors in India.
- IT firms like Trent, Infosys, Tech Mahindra, Tata Consultancy Services, HCL Tech, and Eternal were among the top gainers on the Sensex.
- Despite mixed global cues, with US markets ending mostly lower and Asian markets trading mixed, the fall in crude oil prices is a strong positive for India’s economic outlook.
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.
Top Performers and Laggards on Dalal Street
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.
Impact of Crude Oil Prices on Indian Equities
Brent crude, the global oil benchmark, traded 0.49 per cent lower at $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.
Global Market Cues Driving Indian Equities Higher
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 $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.
