Sensex Gains 239 Points In Early Trade As Crude Falls, Global Cues Improve

Indian equity markets opened on a mixed note on Wednesday, tracking positive global cues as falling crude oil prices and softer US Treasury yields improved investor sentiment.

At 9:16 am, the Sensex gained 239.06 points, or 0.31%, to 77,895.15, after opening at 77,892.10 against Tuesday's close of 77,656.09. The Nifty 50 was largely flat at 24,331.20, down 3.35 points, or 0.01%.

Falling Crude Prices Support Sentiment

Crude oil prices extended their decline after reports that Oman and Iran had discussed establishing a temporary joint maritime corridor in the Strait of Hormuz.

At 9:36 am, November Brent futures were down 2.30% at $85.26 a barrel, while October WTI futures fell 2.46% to $80.33. September crude futures on the MCX were trading 2.23% lower at ₹7,662.

WTI has declined more than 6% over the past two sessions to around $80-81 a barrel, offering relief after weeks of concerns over elevated crude prices and inflation.

Investors will continue to track developments involving the US, Iran and Oman around the Strait of Hormuz for signals on potential supply disruptions.

V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the possibility of another ceasefire between the US and Iran and initiatives to resume shipping through the Strait of Hormuz have brought Brent crude lower.

"Since a rally in the Indian market has been mainly constrained by the elevated crude prices, this sharp dip in crude is a positive," he said.

Bond Yields, FII Flows Offer Support

The benchmark 6.94% 2036 bond yield fell two basis points to 6.8488% on Tuesday as declining crude prices and strong demand at a state debt auction eased concerns around inflation and the interest-rate outlook.

The Indian rupee also ended Tuesday at 95.4125 per dollar, its best session in about a month, supported by lower oil prices and sustained central bank intervention. Currency markets will remain closed on Wednesday for a local holiday and resume on Thursday.

Foreign portfolio investors remained net buyers of Indian equities for a second consecutive session on Tuesday, purchasing shares worth ₹1,594 crore, according to provisional NSE data. Domestic institutional investors also recorded inflows of ₹230 crore.

Nvidia Earnings In Focus

Global investors are also awaiting Nvidia's quarterly earnings on Wednesday for fresh clues on the sustainability of the artificial intelligence spending boom.

Asian markets were mixed ahead of the results, with investors assessing whether Nvidia's performance and outlook can sustain the broader technology and semiconductor trade.

Vijayakumar said softer US bond yields, with the 10-year yield at 4.64%, were also mildly positive for global equity markets.

However, he cautioned that these factors may not be enough to trigger a sharp rally in the Nifty as several large-cap stocks remain technically weak.

"The market rally will be led by the broader market which is driven by supporting fundamentals and momentum," he said, while noting that valuations in the broader market are getting stretched.