Sensex, Nifty Trade Higher as Global Markets Rally and Oil Prices Ease
Indian equity markets started Tuesday’s session on a positive note, with the Sensex and Nifty gaining ground as stronger global cues and a recent decline in crude oil prices improved investor sentiment.
The BSE Sensex opened 42.51 points higher at 74,901.50, while the NSE Nifty 50 added 39.75 points to begin at 23,454.05.
Buying momentum strengthened in the early part of the session. The Sensex later climbed around 116 points to trade near 74,975, while the Nifty remained above the 23,450 mark.
HDFC Bank, Adani Ports Lead Gains
Several large-cap stocks traded higher during the morning session. HDFC Bank, Adani Ports, Eternal, InterGlobe Aviation, Maruti Suzuki and Asian Paints were among the notable gainers.
The IT sector, however, faced some selling pressure. HCL Technologies, Infosys, Tech Mahindra and Tata Consultancy Services were among the stocks trading lower, with the Nifty IT index also coming under pressure.
Global Markets Provide Support
The positive opening in India followed a strong performance across global markets.
On Wall Street, the Nasdaq Composite jumped 2.26% to a record closing high of 27,122.09 on Monday, while the S&P 500 gained 1.49% and the Dow Jones Industrial Average advanced 0.71%.
Technology stocks were a major driver of the U.S. rally, while lower Treasury yields also helped improve the broader risk appetite.
Asian markets followed the positive lead. South Korea's Kospi, Hong Kong's Hang Seng and China's major equity indices were trading higher during Tuesday's session, with technology stocks leading several markets.
Oil Prices Remain a Key Market Driver
Crude oil remains closely watched by Indian investors because India is heavily dependent on imported energy.
Brent crude had fallen sharply over the previous few sessions before recovering slightly on Tuesday. Brent futures were around $101 a barrel, while WTI crude traded near $96 a barrel.
The recent decline from earlier highs has helped ease some concerns over inflation and input costs. Investors are also watching developments surrounding possible U.S.-Iran discussions, which could influence expectations for global oil supply.
NSE IPO Funds Could Return to the Market
With the NSE's IPO process now completed, attention is also shifting back toward the secondary market.
V.K. Vijayakumar, chief investment strategist at Geojit Investments, said the moderation in crude prices and U.S. 10-year Treasury yields had helped improve risk appetite. He also noted that the release of funds tied up in the NSE IPO could add liquidity to the secondary market as refunds begin.
Foreign Investors Remain Net Sellers
Despite the positive market mood, foreign institutional investors continued to sell Indian equities.
FIIs offloaded shares worth approximately ₹576 crore on September 21, while domestic institutional investors provided stronger support, buying equities worth around ₹2,800 crore, according to market data.
The previous session had ended on a strong note. The Sensex gained 564.03 points, or 0.76%, to close at 74,858.99, while the Nifty advanced 67.90 points, or 0.29%, to finish at 23,414.30.
For investors, the focus now remains on crude prices, global bond yields, foreign fund flows and developments in the Middle East as the Indian market heads into another closely watched session.