Sensex Jumps 400 Points as Oil Eases, IT and PSU Banks Rally

Indian equity benchmark indices opened on a strong note on Wednesday, tracking easing crude oil prices, supportive global cues and sustained institutional buying.

At around 9:30 am, the BSE Sensex was up over 400 points or 0.5% at 77,410, while the NSE Nifty50 gained 131.40 points or 0.55% to trade at 24,164.

Market breadth remained firmly positive, with buying visible across broader markets and most sectoral indices trading in the green.

PSU Banks and IT Lead

Except FMCG, all major Nifty sectoral indices traded higher in early deals, signalling broad-based buying interest. Nifty PSU Bank and Nifty IT emerged as the top-performing sectors, rising over 1.5%.

Among individual stocks, Vedanta, InterGlobe Aviation, Mahindra & Mahindra and Bank of Baroda gained between 2% and 3%, while Vedanta also touched a fresh 52-week high.

On the downside, Larsen & Toubro, CG Power and Industrial Solutions, United Spirits and Siemens Energy India were among the notable laggards.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said markets continue to react sharply to developments in the West Asia conflict and fluctuations in crude oil prices. He noted that the latest comments from US officials suggesting easing tensions have supported sentiment, pushing Brent crude lower towards the $108 mark.

However, Vijayakumar cautioned that valuations in broader markets remain expensive, with midcap and smallcap indices trading at elevated multiples compared to largecaps.

Oil Slides, Rupee Strengthens

Crude oil prices declined for the second straight session amid optimism around a possible US-Iran peace agreement.

Brent crude futures fell around 1.4% to $108.35 per barrel, while US WTI crude slipped below the $101 mark after reports that the US may pause some naval operations linked to the Strait of Hormuz crisis.

The easing in crude prices also supported the Indian rupee, which opened 24 paise stronger at ₹95.04 against the dollar compared to the previous close of ₹95.28.

FIIs Return

Institutional flows remained supportive. Foreign institutional investors (FIIs) were net buyers of equities worth ₹3,621 crore on Tuesday, while domestic institutional investors (DIIs) bought shares worth ₹2,602 crore.

Global markets also provided support. US indices ended higher overnight, with the Nasdaq and S&P 500 closing at record highs amid strength in AI-linked technology stocks and easing geopolitical concerns.

Asian markets traded mostly higher in early trade as investors reacted positively to softer oil prices and hopes of progress in US-Iran negotiations.