MUMBAI, Aug 26: Indian equity markets opened higher on Wednesday as declining crude oil prices and hopes of easing tensions around the Strait of Hormuz improved investor sentiment.
The Nifty 50 rose 0.17% to 24,374.50, while the BSE Sensex gained 0.41% to 77,979.32 in early trading. Twelve of the 16 major sectoral indices were trading in positive territory.
The improvement in global sentiment followed reports of renewed Iran-Oman discussions over reopening the strategic waterway, helping bring Brent crude down to around $86.3 a barrel.
Lower oil prices are particularly important for India because the country relies heavily on imported crude to meet its energy requirements. A sustained decline in international oil prices could ease pressure on the country’s import bill and inflation outlook.
Banking stocks led the domestic gains, with public sector lenders rising around 1.5%. Private banks and other financial companies also advanced, reflecting stronger investor interest in the sector.
Oil marketing companies, including BPCL, HPCL and Indian Oil, also moved higher by about 1.5%.
Among individual stocks, Cyient gained more than 5% following a positive analyst-day assessment. Meanwhile, Federal Bank and Jana Small Finance Bank remained under pressure amid market speculation surrounding a possible acquisition.
The market’s performance will continue to depend on crude prices, geopolitical developments, foreign institutional flows and global equity trends as investors approach the monthly derivatives expiry.
