Sensex rose 271.61 points to 77,080.09 and Nifty gained 55.35 points to 24,044.50 in early trade.
Brent crude fell 0.49% to $78.44 per barrel, supporting sentiment on inflation and margins.
Trent, Infosys, Tech Mahindra, TCS and HCL Tech led the gains, while Axis Bank and Bajaj Finance lagged.
Stock Markets Extend Rally in Early Trade on Drop in Crude Oil Prices
Indian equities opened higher for a fourth straight session as Brent crude eased and IT stocks led gains, even as global cues stayed mixed.
Stock Markets Extend Rally in Early Trade on Drop in Crude Oil Prices
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Stock market benchmark indices Sensex and Nifty climbed in early trade on Wednesday following a decline in crude oil prices and a rally in IT firms.
Extending its rally to the fourth day running, the 30-share BSE Sensex further climbed 271.61 points to 77,080.09 in opening trade. The 50-share NSE Nifty advanced 55.35 points to 24,044.50.
From the 30-Sensex firms, Trent, Infosys, Tech Mahindra, Tata Consultancy Services, HCL Tech and Eternal were among the biggest winners.
Axis Bank, Bajaj Finance, NTPC and Adani Ports were among the laggards.
Brent crude, the global oil benchmark, traded 0.49% lower at $78.44 per barrel.
"Crude oil prices have fallen sharply to a nearly three-month low. Falling energy prices are expected to act as a tailwind for the Indian economy, helping contain inflation, improve external balances and support earnings growth across several sectors," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
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In Asian markets, Japan's Nikkei 225 index quoted higher, while South Korea's Kospi, Shanghai's SSE Composite index and Hong Kong's Hang Seng index traded lower.
US markets ended mostly lower on Tuesday.
"Global cues remain mixed. While optimism surrounding the US–Iran peace developments pushed the Dow Jones to fresh record highs, weakness in technology stocks dragged the Nasdaq lower, leaving the S&P 500 marginally in the red," Rajesh Palviya, Head of Research, Axis Direct, said.
Asian markets are trading mixed this morning, although the sharp fall in Brent crude to around $78.6 per barrel is emerging as a significant positive for India, as lower energy prices improve the inflation outlook, reduce import costs and support corporate profitability, he added.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹749.18 crore on Tuesday after a day's breather, according to exchange data.
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On Tuesday, the Sensex jumped 544.15 points, or 0.71%, to settle at 76,808.48. The Nifty climbed 135.25 points, or 0.57%, to end at 23,989.15.