Domestic equity markets traded higher on Wednesday despite a rise in crude oil prices and reports that the United States may extend its blockade of Iranian ports
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MUMBAI — Domestic equity markets traded higher on Wednesday despite a rise in crude oil prices and reports that the United States may extend its blockade of Iranian ports.
Sensex traded 0.52 per cent, or 400 points, higher at 77,289.55, hitting an intraday high in early trade, while Nifty rose 0.53 per cent, or 127.8 points, to 24,123.55.
Sector-wise, buying interest was seen in auto, chemicals, realty, energy and IT stocks.
Nifty Auto, Nifty Chemicals, Nifty Realty, Nifty Oil & Gas, and Nifty IT indices were up 1.61 per cent, 0.94 per cent, 0.89 per cent, 0.72 per cent, and 0.57 per cent, respectively.
Top laggards included Hindalco Industries, JSW Steel, Dr Reddy’s Laboratories, Tata Steel, ICICI Bank, Asian Paints and SBI Life.
According to market experts, despite key developments in the Gulf region, there is no immediate resolution to the energy crisis triggered by the closure of the Strait of Hormuz.
Analysts also noted that oil prices surged further on reports that the United Arab Emirates may exit OPEC, exacerbating supply concerns.
Oil prices climbed on Wednesday, extending their recent rally, following reports that the United States may prolong its blockade of Iranian ports, potentially worsening supply disruptions from the key Middle East producing region.
Additionally, US President Donald Trump has directed aides to prepare for an extended blockade of Iran.
Brent crude rose 0.63 per cent to $111.97 per barrel, while US WTI crude gained 0.81 per cent to $100.74.
Global market cues were mixed. In Asia, Japan’s Nikkei was down 1 per cent, Hong Kong’s Hang Seng gained 1 per cent, while South Korea’s Kospi traded marginally higher.
In the US, Wall Street ended on a negative note, with the Nasdaq falling 0.90 per cent and the S&P 500 closing 0.5 per cent lower.