Mumbai: Benchmark equity indices Sensex and Nifty rose in early trade on Tuesday as reports of the second round of talks between the US and Iran are keeping alive hopes of a resolution to the West Asian conflict.
Also, Brent crude oil prices trading below the $100 per barrel level gave optimism to the markets.
30 shares BSE Sensex climbed 445.82 points to 78,966.12 in early trade. The 50-share NSE Nifty advanced 121.15 points to 24,486.
Of the 30-Sensex firms, Axis Bank, InterGlobe Aviation, Adani Ports, NTPC, ICICI Bank and HDFC Bank were among the top gainers.
Infosys, Tech Mahindra, Tata Consultancy Services and UltraTech Cement were among those left behind.
Brent crude, the global oil benchmark, traded 0.51 percent lower at $94.99 a barrel.
“In the short term, MArKet will continue to be news-driven, oscillating between hope and fear. Reports of a second round of talks between the US and Iran are keeping hopes alive for a resolution to the conflict. Brent crude oil at USD 95 and the decline in spot crude oil prices reflect the market’s belief that the conflict may not last long.
“But if it does, the crude oil price will go up again impacting the equity markets,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
In Asian markets, South Korea’s benchmark Kospi, Japan’s Nikkei 225 index and Hong Kong’s Hang Seng index were trading higher, while Shanghai’s SSE Composite index was quoted lower.
US markets ended slightly lower on Monday.
“On the commodities front, Brent crude oil continues to trade within a consolidation range of USD 93-96 per barrel, reflecting a balance between the geopolitical risk premium and supply-demand dynamics,” said Ponmudi R, CEO of Enrich Money, an online wealth technology and trading firm.
Foreign Institutional Investors (FIIs) offloaded shares worth Rs 1,059.93 crore on Monday, according to exchange data.
On Monday, the Sensex closed marginally higher by 26.76 points or 0.03 percent at 78,520.30. The Nifty rose 11.30 points or 0.05 percent to settle at 24,364.85.
