Sensex, Nifty edge higher as softer crude lifts Dalal Street mood

The BSE Sensex rose 27.75 points, or 0.04%, to 77,986.27 in early trade, while the Nifty 50 gained 19.30 points, or 0.08%, to trade at 24,350.25 around 9:30 am.

In Short

• Brent and WTI prices stayed lower after fresh US-Iran deal optimism
• Lower oil prices are seen easing inflation and supporting growth prospects
• Auto stocks led sectoral gains, with M&M and Maruti advancing early

Stock markets opened slightly higher on Thursday, extending gains from the previous session as easing crude oil prices and positive global cues supported investor sentiment.

The BSE Sensex rose 27.75 points, or 0.04%, to 77,986.27 in early trade, while the Nifty 50 gained 19.30 points, or 0.08%, to trade at 24,350.25 around 9:30 am.

Markets were supported by optimism around a possible US-Iran peace deal, which has helped cool crude oil prices after sharp volatility in recent sessions.

Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said investors should continue tracking developments in the AI trade and the West Asia conflict.

“Despite the West Asia geopolitical tensions, the US market is at record highs and the AI trade is continuing unabated. Two stocks in South Korea and one in Taiwan are powering the AI trade in these countries,” he said.

He added that continued foreign investor selling in India should be viewed in the context of global AI-driven market concentration.

OIL PRICES REMAIN KEY FOCUS

Brent crude was trading near $102.10 per barrel, while WTI crude stood at $95.87 in early trade.

Oil prices had fallen sharply in the previous session after reports suggested that the US and Iran were moving closer to a possible agreement to end the conflict. Lower crude oil prices are seen as positive for India, which imports a large part of its energy needs.

Cooling oil prices help reduce inflation pressures and improve the outlook for economic growth and corporate earnings.

AUTO STOCKS LEAD MARKET GAINS

Among sectoral indices, auto stocks led the gains in early trade.

The Nifty Auto index rose 1.19%, making it the top-performing sector. Shares of Mahindra & Mahindra climbed 1.42%, while Maruti Suzuki gained 0.50%.

Metal and media stocks also saw buying interest, with the Nifty Metal index rising 0.49% and Nifty Media gaining 0.48%.

On the other hand, FMCG and IT stocks traded under pressure. Hindustan Unilever fell 0.79%, while TCS declined 1.18% and Tech Mahindra slipped 0.45%.

BROADER MARKETS ALSO IN GREEN

Broader markets continued to show strength.

The Nifty Midcap 100 index rose 0.60%, while the Nifty Smallcap 100 gained 0.69%. India VIX, which measures market volatility, edged up 1.73% to 16.97.

All major sectors opened in positive territory, reflecting broad-based buying interest after Wednesday’s rally.

Asian markets traded higher, tracking gains on Wall Street after hopes of easing tensions in West Asia improved global risk appetite.

Japan’s Nikkei crossed the 62,000 mark for the first time, while the MSCI Asia ex-Japan index rose sharply.

“There is high concentration risk in the AI trade. With valuations in AI stocks reaching high levels, a sharp correction in AI trade is possible any time,” Vijayakumar said.

On crude oil, he said, “The market is swinging between hope and fear and this might continue until there is a definitive conclusion to the crisis.”

He also noted that the ongoing earnings season is driving stock-specific action.

“The market is rewarding good results and punishing poor results in the ongoing Q4 results season. There are positive results across market caps,” he added.

- Ends