Mumbai, Aug 26: Indian equity markets opened higher on Wednesday as a sharp decline in crude oil prices improved investor sentiment and offered some relief to oil-importing economies such as India.
The Sensex opened 236.01 points, or 0.30 per cent, higher at 77,892.10, while the Nifty 50 started the session 7.40 points, or 0.03 per cent, up at 24,341.95.
The early movement remained mixed across sectors. Public sector banks led the gains, with the Nifty PSU Bank index rising around 1.4 per cent. Realty stocks also performed well, with the Nifty Realty index gaining 0.66 per cent, while the Nifty MidSmall Financial Services and Nifty Private Bank indices advanced 0.48 per cent and 0.46 per cent, respectively.
Metal stocks were under pressure, with the Nifty Metal index falling 0.51 per cent. Auto, healthcare, FMCG and consumer durable stocks also traded marginally lower.
The biggest support for the market came from falling crude oil prices. Brent crude declined 2.81 per cent to around $86 a barrel, while US West Texas Intermediate crude was trading near $80.10 a barrel.
For India, lower oil prices are particularly important because the country relies heavily on crude imports. A sustained decline in oil prices can help reduce import costs and inflationary pressures while supporting corporate margins and the broader economy.
Investor confidence was also helped by reports of renewed ceasefire efforts between the United States and Iran and attempts to resume shipping through the Strait of Hormuz. Any improvement in the situation around the key shipping route could reduce concerns about disruptions to global oil supplies.
Global market cues remained mixed. A decline in US bond yields provided some support to equities, with the 10-year US Treasury yield at around 4.64 per cent. At the same time, investors remained cautious ahead of Nvidia’s earnings announcement, which could influence global technology stocks and risk sentiment.
Market analysts said the positive opening may not immediately translate into a strong rally, as several heavyweight stocks continue to face technical pressure and valuations remain elevated. The broader market, however, continues to show support from underlying fundamentals and momentum.
The Nifty is expected to face an important hurdle around the 24,400 level. A sustained move above this level could strengthen the market and open the possibility of a move towards 24,550 and 24,820. On the downside, 24,220 remains an important level for investors to watch.
With crude prices, geopolitical developments, global bond yields and Nvidia’s earnings all influencing sentiment, investors are likely to remain selective and closely monitor developments through the trading session.
Overall, the Indian market began the day on a cautiously positive note, with lower crude prices providing relief while geopolitical uncertainty, global cues and elevated valuations continue to keep investors watchful.