Stock market opens higher for fourth day as Brent crude slips below $79
The S&P BSE Sensex was up 179.03 points, or 0.23%, at 76,987.51 in early trade, while the NSE Nifty50 gained 46.45 points, or 0.19%, to trade at 24,035.60. The Nifty once again remained above the psychologically important 24,000 mark.
Benchmark indices opened higher on Wednesday, extending their winning streak for a fourth straight session as crude oil prices continued to slide following the US-Iran peace agreement, easing concerns over inflation and India's external balances.
The S&P BSE Sensex was up 179.03 points, or 0.23%, at 76,987.51 in early trade, while the NSE Nifty50 gained 46.45 points, or 0.19%, to trade at 24,035.60. The Nifty once again remained above the psychologically important 24,000 mark.
The rally comes after strong gains over the last three sessions, during which the Sensex surged 4% and the Nifty climbed 3.6%.
The biggest support for markets continues to be the sharp correction in oil prices. Brent crude fell another 0.65% to $78.45 per barrel, while WTI crude slipped 0.84% to $75.41.
Brent crude has now fallen about 16% in the last five trading sessions after the preliminary peace deal between the United States and Iran reduced fears of supply disruptions in the Strait of Hormuz.
For India, a major importer of crude oil, lower prices are positive as they help reduce inflationary pressures, support the rupee and improve the country's current account position.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the sharp decline in crude prices has removed one of the biggest macro concerns facing the Indian economy.
"The positive factor is the steady and sharp decline in crude prices. Brent crude has declined steeply by around 16% in the last five days to about $79, thereby removing the major macro concern of a rising BoP deficit in India," he said.
Among sectoral indices, Nifty IT emerged as the top performer, rising 1.33%. Nifty Media gained 0.57%, Nifty FMCG advanced 0.32%, while Nifty Financial Services added 0.07%.
Metal stocks remained under pressure, with Nifty Metal falling 0.54%. Nifty Realty declined 0.97%, making it the biggest sectoral loser in early trade.
Among Sensex stocks, Trent led the gains with a 3.64% jump. Infosys rose 1.65%, Tech Mahindra gained 1.61%, TCS climbed 1.28%, HCLTech advanced 1.18%, while Eternal added nearly 1%.
Hindustan Unilever, Sun Pharma, IndiGo and ICICI Bank were also trading in positive territory.
On the losing side, Axis Bank fell 0.71%, followed by Adani Ports (-0.69%), Bajaj Finance (-0.41%), NTPC (-0.30%), Bharti Airtel (-0.26%) and Larsen & Toubro (-0.26%).
The broader market continued to outperform benchmark indices.
Nifty Smallcap 100 rose 0.53%, while Nifty Midcap 50 gained 0.26% and Nifty Midcap 100 added 0.23%.
Volatility remained subdued, with India VIX rising marginally by 0.18% to 13.39.
Another positive development for markets is the moderation in foreign investor selling. According to Vijayakumar, the combination of falling crude prices, a strengthening rupee and expectations of higher capital inflows could help reduce FII outflows in the coming weeks.
"The sharp correction in Brent crude and expectations surrounding massive capital flows to India can lead to further appreciation in the rupee. This, in turn, will further dissuade FIIs from selling. They may even turn buyers anticipating further rupee appreciation," he said.
However, he cautioned that the weak progress of the monsoon remains a key risk for markets, as it could fuel food inflation if rainfall does not improve in the coming weeks.
Benchmark indices opened higher on Wednesday, extending their winning streak for a fourth straight session as crude oil prices continued to slide following the US-Iran peace agreement, easing concerns over inflation and India's external balances.
The S&P BSE Sensex was up 179.03 points, or 0.23%, at 76,987.51 in early trade, while the NSE Nifty50 gained 46.45 points, or 0.19%, to trade at 24,035.60. The Nifty once again remained above the psychologically important 24,000 mark.
The rally comes after strong gains over the last three sessions, during which the Sensex surged 4% and the Nifty climbed 3.6%.
The biggest support for markets continues to be the sharp correction in oil prices. Brent crude fell another 0.65% to $78.45 per barrel, while WTI crude slipped 0.84% to $75.41.
Brent crude has now fallen about 16% in the last five trading sessions after the preliminary peace deal between the United States and Iran reduced fears of supply disruptions in the Strait of Hormuz.
For India, a major importer of crude oil, lower prices are positive as they help reduce inflationary pressures, support the rupee and improve the country's current account position.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the sharp decline in crude prices has removed one of the biggest macro concerns facing the Indian economy.
"The positive factor is the steady and sharp decline in crude prices. Brent crude has declined steeply by around 16% in the last five days to about $79, thereby removing the major macro concern of a rising BoP deficit in India," he said.
Among sectoral indices, Nifty IT emerged as the top performer, rising 1.33%. Nifty Media gained 0.57%, Nifty FMCG advanced 0.32%, while Nifty Financial Services added 0.07%.
Metal stocks remained under pressure, with Nifty Metal falling 0.54%. Nifty Realty declined 0.97%, making it the biggest sectoral loser in early trade.
Among Sensex stocks, Trent led the gains with a 3.64% jump. Infosys rose 1.65%, Tech Mahindra gained 1.61%, TCS climbed 1.28%, HCLTech advanced 1.18%, while Eternal added nearly 1%.
Hindustan Unilever, Sun Pharma, IndiGo and ICICI Bank were also trading in positive territory.
On the losing side, Axis Bank fell 0.71%, followed by Adani Ports (-0.69%), Bajaj Finance (-0.41%), NTPC (-0.30%), Bharti Airtel (-0.26%) and Larsen & Toubro (-0.26%).
The broader market continued to outperform benchmark indices.
Nifty Smallcap 100 rose 0.53%, while Nifty Midcap 50 gained 0.26% and Nifty Midcap 100 added 0.23%.
Volatility remained subdued, with India VIX rising marginally by 0.18% to 13.39.
Another positive development for markets is the moderation in foreign investor selling. According to Vijayakumar, the combination of falling crude prices, a strengthening rupee and expectations of higher capital inflows could help reduce FII outflows in the coming weeks.
"The sharp correction in Brent crude and expectations surrounding massive capital flows to India can lead to further appreciation in the rupee. This, in turn, will further dissuade FIIs from selling. They may even turn buyers anticipating further rupee appreciation," he said.
However, he cautioned that the weak progress of the monsoon remains a key risk for markets, as it could fuel food inflation if rainfall does not improve in the coming weeks.
