Sensex, Nifty Open Higher As Crude Falls, Nvidia Earnings Lift Global Sentiment

Indian equity benchmark indices opened higher on Thursday, supported by falling crude oil prices and a positive global market backdrop following strong quarterly results from Nvidia.

The Nifty 50 rose 0.29% to 24,277.60, while the BSE Sensex gained 0.13% to 77,576.76 as of 9:15 a.m. IST.

Fifteen of the 16 major sectoral indices advanced, although gains remained marginal. The broader market also opened firm, with small-cap and mid-cap indices rising 0.1% and 0.2%, respectively.

Crude Prices Ease On Hormuz Developments

Benchmark Brent crude fell 0.6% to $87.30 a barrel after Iran said it was working with Oman to finalise details of an agreement concerning the Strait of Hormuz.

The development eased concerns over prolonged disruptions to oil supplies from the Middle East, providing some relief to markets.

The Indian rupee also opened marginally higher at 95.44 per dollar, compared with Tuesday's close of 95.41, as lower oil prices and continued central bank intervention offset expectations of a Federal Reserve rate hike next month and persistent dollar demand for hedging.

Nvidia Earnings Lift Asian Markets

Global technology stocks received a boost after Nvidia reported quarterly revenue that more than doubled and forecast third-quarter revenue above Wall Street expectations.

The MSCI's broadest index of Asia-Pacific shares excluding Japan rose 0.7%, led by technology stocks.

However, geopolitical risks remain a key concern for investors.

V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said geopolitical tensions continue to weigh on markets, citing both US-Iran tensions and renewed escalation in the Russia-Ukraine conflict.

"Even though the U.S. bond yields have softened a bit, they continue to be too high. This will restrain a sharp rally in the market," Vijayakumar said.

He also highlighted the divergence between the broader market and benchmark indices, noting that the midcap index is at record highs while the Nifty remains about 8% below its peak.

According to Vijayakumar, this trend is likely to persist in the near term as money flows and momentum continue to support the small- and mid-cap rally. However, he cautioned that the divergence is fundamentally unsustainable beyond a point as valuations in the segment become stretched.

"Investors should look for stocks with good growth prospects but reasonable valuations. This combination is very rare," he said.