Indian equity benchmarks opened higher on Wednesday amid a sharp decline in oil prices with Brent crude decreasing by more than 2 per cent.
MUMBAI — Indian equity benchmarks opened higher on Wednesday amid a sharp decline in oil prices with Brent crude decreasing by more than 2 per cent.
Sensex opened 236.01 points or 0.30 per cent higher at 77,892.10, while Nifty started the session increasing 7.40 points or 0.03 per cent at 24,341.95.
In early trade, sectoral performance was mixed with PSU banking shares leading gains. Nifty PSU Bank rose 1.4 per cent, followed by Nifty Realty, up 0.66 per cent and Nifty MidSmall Financial Services which gained 0.48 per cent. Meanwhile, Nifty Private Bank also rose 0.46 per cent.
On the other hand, Nifty Metal fell 0.51 per cent which was top laggard. Nifty Auto declined, Nifty Healthcare Index, Nifty FMCG and Nifty Consumer Durables slipped up to 0.26 per cent.
Market sentiment was supported by easing crude oil prices amid reports of another ceasefire between the US and Iran and efforts to resume shipping through the Strait of Hormuz.
In addition, Brent crude was trading around $86 per barrel, a decline of more than 2 per cent. However, a decline in US bond yields, with the 10-year Treasury yield at 4.64 per cent, also offered some support to global equities.
Analysts said these factors may not be sufficient to trigger a sharp rally in Nifty as several heavyweight stocks remain technically weak.
The broader market is expected to provide leadership, supported by fundamentals and momentum, though stretched valuations remain a concern, according to them.
The experts noted that the rise seen in the previous session is expected to mature around the 24,400 level with the Nifty potentially extending gains towards 24,550 or 24,820. On the downside, 24,220 is seen as a key marker.
Additionally, Asian markets were trading mixed despite a decline in crude oil prices. Sentiment remained cautious after US index futures edged lower with investors awaiting Nvidia's earnings announcement.
International benchmark Brent crude declined 2.81 per cent to around $86 per barrel, while US West Texas Intermediate (WTI) crude was seen at nearly $80.10 per barrel.