Sensex, Nifty rebound as crude oil prices ease

New Delhi: Benchmark equity indices Sensex and Nifty rebounded in early trade on Wednesday, supported by easing crude oil prices, even as continued foreign investor selling weighed on market sentiment.

The 30-share BSE Sensex climbed 283.66 points to 74,812.74 in early trade, while the 50-share NSE Nifty gained 85.55 points to 23,414.55.

Follow The PSUWatch Channel on WhatsApp

Among Sensex stocks, Bajaj Finance, Bajaj Finserv, Tata Steel, UltraTech Cement, Larsen & Toubro and Asian Paints were among the major gainers.

Tata Consultancy Services, Infosys, HDFC Bank and Mahindra & Mahindra were among the laggards.

Crude oil prices ease

Brent crude, the global oil benchmark, declined 0.97 percent to USD 98.29 per barrel, offering some relief to India given its heavy dependence on imported energy.

Market experts said the moderation in crude prices could ease pressure on inflation and India's external balances. However, continued foreign investor selling and uncertainty surrounding the Middle East conflict remain key risks for domestic equities.

FIIs sell shares worth Rs 3,810 crore

Foreign Institutional Investors (FIIs) sold equities worth Rs 3,809.99 crore on Tuesday, according to exchange data.

Analysts said global cues remained mixed, with Wall Street offering little clear direction. Technology stocks supported the Nasdaq, while the Dow ended lower.

Asian markets also traded mixed on Wednesday. South Korea's Kospi was in positive territory, while China's Shanghai Composite and Hong Kong's Hang Seng traded lower.

Follow PSU Watch on LinkedIN

Market participants remain cautious as any fresh escalation in geopolitical tensions could push crude oil prices higher again, potentially reversing some of the relief for India from the recent decline in oil prices.

Domestic equities had ended lower in the previous session. On Tuesday, the Sensex declined 329.91 points, or 0.44 percent, to close at 74,529.08. The Nifty fell 85.30 points, or 0.36 percent, to settle at 23,329.

(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)