1 week ago
Indian Stock Markets Open Higher as Crude Oil Prices Fall
Indian stock markets started the day higher.
The Sensex and Nifty are important measures of how many Indian shares are performing.
One major reason for the rise was that crude oil became cheaper.
Cheaper oil can reduce worries about rising prices in India.
Foreign investors also bought Indian shares worth Rs 1,593.53 crore.
Markets in several Asian countries and the United States were also positive.
Some Indian companies gained, while others, including Infosys and Bharti Airtel, fell.
Experts said tensions involving the United States, Iran and the Strait of Hormuz could still create risks.
The BSE Sensex rose 285 points to 77,944.02 in early trade.
The NSE Nifty gained 23.25 points to 24,356.10.
Brent crude fell 2.66% to $86.22 per barrel, easing inflation concerns.
Foreign institutional investors bought equities worth Rs 1,593.53 crore on Tuesday.
Asian and US markets also ended or traded higher, supporting investor sentiment.
- Who
- Indian benchmark indices Sensex and Nifty, domestic investors, and foreign institutional investors.
- What
- Indian stock markets opened higher as crude oil prices declined and global equities remained positive.
- Where
- Indian stock exchanges, with positive market trends also reported across Asia and the United States.
- When
- Early trade on Wednesday, following foreign-investor activity on Tuesday.
- Why
- Lower crude prices, foreign fund inflows, and positive global equity cues improved market sentiment.
Positive market outlook
Remaining risks
Impact of lower oil prices
Positive market outlook
Experts described falling crude prices as a meaningful near-term tailwind because they could ease crude-driven inflation concerns.
Remaining risks
The market remains exposed to supply-disruption risks if tensions involving the United States, Iran and the Strait of Hormuz worsen.
Global and foreign-investor support
Positive market outlook
Positive Asian and US market trends, along with Rs 1,593.53 crore of foreign buying, supported Indian equities.
Remaining risks
The reported gains were concentrated in early trade, while several major Indian companies, including Infosys and Bharti Airtel, were laggards.
Crude price estimates
Positive market outlook
One market report cited Brent crude at $86.22 per barrel, down 2.66%, and another described it as around $85.5.
Remaining risks
The differing quoted levels show that crude prices were changing during the reporting period, so the exact price depended on the time of reference.
Key facts
- Sensex
- Rose 285 points to 77,944.02 in early trade.
- Nifty
- Gained 23.25 points to 24,356.10.
- Brent crude
- Was reported 2.66% lower at $86.22 per barrel; another expert cited a level around $85.5.
- Foreign institutional investors
- Bought equities worth Rs 1,593.53 crore on Tuesday.
- Major gainers
- ICICI Bank, State Bank of India, Kotak Mahindra Bank, Eternal, Bajaj Finserv and Asian Paints.
- Major laggards
- Infosys, Bharti Airtel, Larsen & Toubro and Bharat Electronics.
- Global markets
- South Korea, Japan, Shanghai, Hong Kong and US markets were reported positive.
Quotes
Hariselvan Radhakrishnan
Founder and CEO of HST Wealth, a research analyst firm
“Crude oil has emerged as the key positive catalyst. WTI has fallen more than 6 per cent over the past two sessions to trade in the $80-81/per barrel range. For domestic markets, the retreat in oil prices provides a meaningful near-term tailwind after crude-driven inflation worries dominated sentiment over the past several weeks.”
rediff.com
“The most significant development for domestic markets is the continued decline in crude oil prices. Brent crude has eased to around $85.5 per barrel, extending its retreat from last week's peak near $94, as concerns over supply disruptions continue to recede.”
rediff.com
Sources
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