Stock markets rally in early trade as crude oil prices decline further

New Delhi: Market benchmark indices Sensex and Nifty rallied in early deals on Thursday amid softening crude oil prices following positive development on the geopolitical front and buying in blue-chip IT stocks.

The 30-share BSE Sensex climbed 377.40 points to 77,269.54 early trade. The 50-share NSE Nifty rallied 106.70 points to 24,113.25.

"Qatar has stated that the latest round of indirect US–Iran talks has made 'positive progress', keeping hopes of a broader diplomatic resolution alive," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.

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From the Sensex pack, Infosys, HCL Tech, Tata Consultancy Services, Tech Mahindra, Eternal and InterGlobe Aviation were among the major winners.

NTPC, Bajaj Finance, Larsen & Toubro and Bharat Electronics were among the laggards.

Brent crude, the global oil benchmark, traded 1 percent lower at USD 70.79 per barrel.

"There are some positive trends that are providing near-term support and strength to the market. One, crude continues to fall with Brent below USD 71 now. This will further strengthen India's macros and help in achieving higher growth while keeping inflation in check.

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"Two, the auto sales numbers in June was strong. This indicates that the demand momentum in the economy continues to be strong," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

He further said that the AI trade in South Korea is weakening as indicated by the 11.5 percent correction in Kospi last month. This is positive for non-AI markets like India, Vijayakumar noted.

"Fourth, the FII selling is tapering off giving an upper hand to the DIIs (Domestic Institutional Investors)," he added.

Passenger vehicle sales in the country are estimated to have grown nearly 25 percent in June to about 4 lakh units, led by the likes of Maruti Suzuki, Tata Motors PV and Mahindra & Mahindra.

In Asian markets, South Korea's Kospi traded over 4 percent lower, Japan's Nikkei 225 index declined more than 1 percent and Shanghai's SSE Composite index quoted 0.90 percent down. Hong Kong's Hang Seng index quoted more than 1 percent higher.

US markets ended lower on Wednesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,140.50 crore on Wednesday, according to exchange data.

On Wednesday, the Sensex climbed 443.97 points, or 0.58 percent, to settle at 76,922.64. The Nifty rallied 140.10 points, or 0.59 percent, to end at 24,005.85.

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