The domestic equity benchmark indices traded higher on Wednesday at the opening, tracking their Asian counterparts, as the easing in crude oil prices amid another proposed <a href="https://www.mid-day.com/news/world-news/article/us-offers-sanctions-relief-to-iran-in-exchange-for-reopening-strait-of-hormuz-23646662" target="_blank" rel="none noopener">deal between USA and Iran</a> boosted investor sentiment.
The stock market was open for trading today on August 26, despite it being a bank holiday in several states due to Eid-e-Milad and Onam.
<h2>Market movement</h2>
The 30-share BSE Sensex jumped 275.63 points or 0.35 per cent at 77,931.72 during the initial trade. The 50-share NSE Nifty gained 33.05 points or 0.14 per cent at 24,367.60.
Among the Sensex constituents, Eternal, <a href="https://www.mid-day.com/business/business-news/article/-kotak-mahindra-bank-q1fy27-net-profit-rises-256-per-cent-to-rs-412296-crore-23640404" target="_blank" rel="none noopener">Kotak Mahindra Bank</a>, ICICI Bank, Ultra Tech Cement, Bajaj Finserv and Hindustan Unilever were the major gainers in the initial trade, while Infosys, Bharti Airtel, Larsen and Toubro, Bharat Electronics, Tata Steel were the laggards.
On Tuesday, supported by late buying the Sensex bounced back and gained 286.98 points, or 0.37 per cent, to settle at 77,656.09. while the Nifty recovered to advance 115.50 points, or 0.48 per cent, at 24,334.55.
"In the coming sessions, a follow through strength above last week high 24,360 will signal extension of the pullback towards 24,550 and 24,700 levels in the coming sessions. While failure to move above last week high will signal consolidation in the range of 24,000-24,350," Bajaj Broking Research said.
<h2>Global cues</h2>
"Global cues were supportive, with Wall Street ending higher as the 10-year US Treasury yield eased seven basis points to 4.625 per cent. The S&amp;P 500 gained 0.32 per cent and the Nasdaq advanced 0.66 per cent, led by semiconductor stocks ahead of Nvidia's results. Tokyo is also trading on a positive note following firm gains in the previous session," Rajesh Palviya, Head of Research, Axis Direct.
"For Indian equities, the sharp decline in crude oil prices remains an important positive. Brent has eased from above USD 93 a barrel last week to below USD 87, reducing concerns around imported inflation and the pressure on India&rsquo;s trade balance that had weighed on sentiment through August," he added.
According to news agency PTI, Brent crude, the global oil benchmark, traded 2.66 per cent lower at USD 86.22 per barrel, while <a href="https://www.mid-day.com/business/stock-market/article/foreign-institutional-investors-offload-equities-worth-rs-7180-crore-amid-west-asia-crisis-23641524" target="_blank" rel="none noopener">Foreign Institutional Investors (FIIs)</a> bought equities worth Rs 1,593.53 crore on Tuesday.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index all traded higher.
"There are two factors which are positive for the market today. One, news of another ceasefire between &nbsp;the US and Iran and initiatives for resuming shipping through the Strait of Hormuz have brought down the Brent crude rate to USD 86.3. Since a rally in the Indian market has been mainly constrained by the elevated crude prices, this sharp dip in crude is a positive. Two, the dip in bond yields in the US (10-year at 4.64 per cent) is a mild positive for equity markets, globally," V K Vijayakumar, Chief Investment Strategist, Geojit Investments said.
But these are not good enough to trigger a sharp rally in the Nifty since many mega caps in the Nifty are technically weak. The market rally will be led by the broader market which is driven by supporting fundamentals and momentum. It is also important to note that valuations in the broader market are getting stretched," he added.
(With inputs from PTI)

During the early deals, Sensex gained 275.63 points or 0.35 per cent at 77,931.72, while the Nifty was up 33.05 points or 0.14 per cent at 24,367.60

Sensex, Nifty gain in early trade as as crude oil prices ease to USD 86 a barrel

Sensex falls 183 points, Nifty drops over 125 points as IT stocks weigh on indices

The 30-share BSE Sensex jumped 275.63 points or 0.35 per cent at 77,931.72 during the initial trade. The 50-share NSE Nifty was gained 33.05 points or 0.14 per cent at 24,367.60

Stock market update: Sensex up 275 points as crude oil prices ease to USD 86 per barrel

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Home / Business / Stock Market / Article / Stock market update: Sensex up 275 points as crude oil prices ease to USD 86 per barrel