Indian benchmark indices opened higher on Wednesday, supported by positive global market signals, easing crude oil prices and continued buying by foreign institutional investors (FIIs). The market also gained momentum as investors remained hopeful that developments around the Strait of Hormuz could help ease concerns over global oil supplies.
At around 9:45 a.m., the Sensex was trading 301.34 points, or 0.39%, higher at 77,957.44. The Nifty 50 stood at 24,362.10, gaining 27.55 points, or 0.11%, from the previous close.
Crude oil prices provide major support
One of the key factors supporting the market was the decline in international crude oil prices. Brent crude fell 2.7% to around $86.2 a barrel after Iran and Oman discussed measures related to navigation through the strategically important Strait of Hormuz.
The two countries discussed the possibility of establishing a temporary joint navigational corridor and agreed on steps to clear mines from the waterway. The developments raised hopes that movement through the Strait could gradually become smoother, easing concerns about potential disruptions to global oil supplies.
Lower crude prices are generally viewed positively by Indian equities because India imports a significant portion of its crude oil requirements. A sustained decline in oil prices can help reduce pressure on the country’s import bill, inflation and corporate input costs.
Global markets remain supportive
Positive cues from international markets also helped improve investor sentiment in domestic equities. Asian markets largely traded in positive territory, led by gains in technology stocks and an easing in global bond yields.
The MSCI Asia-Pacific equities index rose around 0.3%, while Hong Kong’s Hang Seng Index gained about 1%. China’s Shanghai Composite advanced 0.4%. Japan’s Topix and Australia’s S&P/ASX 200 also traded marginally higher.
However, the overall regional trend was not uniformly positive. Nikkei 225 futures declined around 0.4%, indicating some caution among investors.
The improving global backdrop provided additional support to Indian equities, which have been closely tracking movements in international markets, bond yields and commodity prices.
FII buying strengthens market sentiment
Foreign institutional activity was another important factor behind the market’s upward movement. Institutional flows remained supportive, with both foreign and domestic investors emerging as net buyers.
Foreign institutional investors extended their buying streak into a second consecutive session, purchasing Indian equities worth around ₹1,593 crore. Continued FII inflows are being viewed positively as they provide liquidity and indicate improving investor confidence in domestic equities.
Domestic institutional investors also remained on the buying side, further supporting the broader market sentiment.
Technical outlook remains positive
From a technical perspective, market experts expect the recent upward momentum to continue, although traders may watch key support and resistance levels closely.
Anand James, Chief Market Strategist at Geojit Investments, said the rise expected in the previous session, with an initial objective of 24,400, is likely to gain further strength. He noted that the market could potentially extend its advance towards 24,550 and even 24,820 if the positive momentum continues.
At the same time, James identified the 24,220 region as an important downside marker. A move below this level could signal some loss of momentum and prompt traders to reassess their positions.
Overall, easing crude prices, favourable global cues and continued institutional buying have provided a positive backdrop for Indian equities. Investors, however, are likely to remain watchful of developments around the Strait of Hormuz, global oil prices and overseas market trends for further direction.
Going ahead, investors are likely to closely track crude oil movements, developments around the Strait of Hormuz and overseas market trends for further direction. Continued FII inflows and stability in global bond yields could support sentiment, although volatility may persist if geopolitical or commodity-related risks resurface.
Kaashika is a social media strategist and financial content creator at Lakshmishree. She specialises in simplifying complex IPO and stock market concepts into clear, easy-to-understand content. Having created over 500+ pieces of financial content across reels, blogs, website posts and digital creatives, Kaashika helps audiences connect with the world of finance in a more accessible and engaging way.
