Tuesday market: Sensex, Nifty open higher as falling crude lift investor sentiment

New Delhi: Indian benchmark equity indices opened higher on Tuesday, buoyed by a sharp decline in global crude oil prices as easing geopolitical tensions in West Asia improved investor sentiment. Strong buying in information technology stocks further supported the market's upward momentum despite mixed global cues and continued foreign fund outflows.

The 30-share BSE Sensex rose 152.70 points to 76,988.48 in early trade, while the NSE Nifty50 advanced 44.95 points to 24,040.90, extending Monday's rally.

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IT majors led the gains on the Sensex, with Tech Mahindra, Tata Consultancy Services, Infosys and HCL Technologies trading firmly in the green. Consumer goods major Hindustan Unilever and Eternal also figured among the top performers.

On the other hand, Bharat Electronics, NTPC, Power Grid Corporation and State Bank of India were among the major laggards in early deals.

Investor sentiment received a boost after Brent crude, the international oil benchmark, declined 1.44 per cent to USD 87.09 per barrel, raising hopes of easing inflationary pressures for oil-importing economies such as India.

"Crude oil prices extended their decline as optimism over renewed talks with Iran eased concerns about potential supply disruptions," said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm.

However, the market's gains were tempered by persistent selling from foreign institutional investors (FIIs), who offloaded equities worth Rs 1,688.23 crore on Monday, according to exchange data.

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Asian markets presented a weak picture, with South Korea's KOSPI plunging 9.34 per cent. Japan's Nikkei 225, China's Shanghai SSE Composite and Hong Kong's Hang Seng indices were also trading in negative territory, reflecting cautious global investor sentiment. Wall Street, meanwhile, ended on a mixed note overnight.

The domestic market had witnessed a strong rally in the previous session, with the BSE Sensex surging 776.01 points, or 1.02 per cent, to close at 76,835.78, while the NSE Nifty climbed 228.50 points, or 0.96 per cent, to settle at 23,995.95.

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