Indian stock markets opened higher on Wednesday as falling crude oil prices and hopes of progress on reopening the Strait of Hormuz boosted investor sentiment.
The Sensex rose 292 points to 77,948, while the Nifty 50 gained 33 points to 24,367 around 9:55 am. Lower US bond yields also supported global markets.
PSU BANKS LEAD THE GAINS
PSU banks were the strongest performers, with the Nifty PSU Bank index rising 1.42%. Private banks and financial stocks also gained, while IT, auto and consumer stocks were slightly weaker.
Among Nifty 50 stocks, Eternal, Kotak Mahindra Bank and ICICI Bank were among the top gainers. Infosys was the biggest loser, followed by Bharti Airtel and Larsen & Toubro.
Broader markets also remained positive, with mid-cap and small-cap indices gaining. India VIX fell nearly 3% to 10.76.
CRUDE OIL PRICES FALL
Brent crude fell about 2.5% to $86.39 per barrel, while WTI dropped to $80.40.
The decline came after Iran resumed discussions with Oman over managing the Strait of Hormuz, raising hopes that shipping through the important oil route could resume more smoothly.
Lower oil prices are particularly helpful for India because the country imports most of its crude.
RALLY MAY REMAIN LIMITED
Market experts, however, cautioned that the positive news may not be enough for a major Nifty rally. Several large companies in the index remain technically weak.
The broader market could continue to perform better, supported by strong fundamentals and momentum, but high valuations are becoming a concern.
Overall, falling crude prices and improving global sentiment provided support to Indian markets, although investors remain cautious about valuations and upcoming US inflation data.
