MUMBAI: Indian benchmark indices Sensex and Nifty extended their upward momentum in early trade on Wednesday, supported by a sharp decline in crude oil prices and positive cues from Asian markets.
The BSE Sensex surged over 880 points in opening deals, while the NSE Nifty climbed more than 300 points, reflecting strong buying interest across sectors.
Market sentiment improved after global crude oil prices dropped below the USD 100 per barrel mark, easing concerns over inflation and energy costs. The decline comes amid growing expectations of a possible de-escalation in the ongoing West Asia tensions, following signals of potential diplomatic engagement.
Asian markets also traded higher, providing additional support to domestic equities. However, analysts cautioned that uncertainty remains as conflicting signals continue to emerge regarding negotiations in the region.
Among the top gainers in early trade were stocks from sectors such as automobiles, banking and infrastructure, while IT shares lagged behind the broader market rally.
Despite the positive momentum, foreign institutional investors continued to remain net sellers in the previous session, whereas domestic institutional investors provided some support through sustained buying.
Experts noted that while easing geopolitical concerns and falling oil prices have boosted short-term sentiment, market trends will remain sensitive to further developments in global tensions and capital flows.