Indian equity markets opened higher on Wednesday as positive cues from global markets, driven by softer-than-expected US inflation data, helped investors look past concerns over escalating US-Iran tensions.
The Sensex and Nifty gained as easing inflation pressures in the US reduced fears of aggressive monetary tightening and improved risk appetite.
At around 10:30 am, the benchmark Sensex was trading 528 points higher, or 0.69 per cent, at 77,583. The NSE Nifty50 also advanced 150 points, or 0.63 per cent, to 24,202.
Market participation remained strong, with a majority of stocks trading in positive territory. Of the 3,042 stocks listed on the National Stock Exchange that were active during early trade, 2,230 shares were gaining, while 717 stocks were trading lower.
Among Nifty50 constituents, Shriram Finance emerged as the top gainer, rising nearly 3 per cent. HDFC Life followed with a gain of 2.41 per cent. Banking stocks witnessed broad-based buying, supporting the overall market momentum.
State Bank of India shares climbed 1.62 per cent, while Axis Bank gained 1.6 per cent. ICICI Bank and HDFC Bank were also trading higher by 1.11 per cent each.
On the losing side, Power Grid Corporation was the biggest drag among Nifty50 stocks, declining more than 1 per cent. Hindalco Industries also slipped 0.88 per cent. Information technology stocks remained under pressure, with Infosys falling 0.67 per cent and Wipro declining 0.57 per cent.
The market rally was supported by weaker-than-expected US inflation figures for June, which boosted Wall Street and Asian equities. Lower inflation numbers reduced concerns about further interest rate hikes by the US Federal Reserve, easing pressure on emerging markets such as India.
Analysts said softer US inflation could also support foreign investor flows by reducing dollar strength and improving sentiment towards risk assets.
Meanwhile, investors continued monitoring geopolitical developments after renewed clashes between the US and Iran over control of the Strait of Hormuz. The situation has raised concerns over global crude oil supplies and market volatility.
Asian markets traded higher, while US stock futures also pointed towards a positive opening for Wall Street.
Markets were also tracking a revised Russia sanctions bill in the US, which reportedly eased earlier tariff proposals but could still allow penalties on countries importing Russian energy, including India and China.
