Stock Market Rallies as Crude Oil Prices Decline

Indian equity markets opened Wednesday’s trading session on a strong note, tracking positive trends across Asian markets amid easing concerns over crude oil prices. The Sensex surged more than 1,300 points, while the Nifty gained over 300 points in early trade. The rally boosted investors’ wealth, with the total market capitalisation of BSE-listed companies increasing by nearly ₹6 lakh crore to around ₹513 lakh crore. At around 9:50 AM, the Sensex was up 1,347 points at 82,454, while the Nifty gained 355 points to trade at 25,400. The rupee also strengthened by 7 paise against the US dollar to 93.70.

Among the Nifty constituents, shares of InterGlobe Aviation, Asian Paints, SBI Life Insurance, Axis Bank and Maruti Suzuki recorded gains, while Hindalco and Dr. Reddy’s Laboratories faced selling pressure. IndiGo shares rose by more than 5 per cent. The positive sentiment was supported by expectations of easing tensions in West Asia and a decline in crude oil prices. During Tuesday’s trading session, crude oil prices fell below $90 per barrel, touching a three-month low. Although Brent crude edged up to around $92 per barrel on Wednesday, global markets continued to respond positively.

Continued buying by foreign institutional investors also supported the rally. Foreign investors purchased equities worth ₹7,212 crore in Tuesday’s session. Better-than-expected second-quarter earnings reported by several companies further boosted market sentiment. Asian markets also traded positively, with Japan’s Nikkei rising 0.8 per cent and South Korea’s Kospi gaining 0.6 per cent. These favourable global cues, along with easing crude oil prices and foreign fund inflows, contributed to the strong opening on Dalal Street.