Indian equity markets opened higher on Tuesday, rebounding after the previous session's decline, supported by positive global cues, softer crude oil prices, and improved global risk sentiment.
The BSE Sensex opened about 277 points higher at 77,005, recovering after falling 372 points in the previous trading session. The NSE Nifty 50 also opened on a positive note, crossing the key 24,000 mark. Following the previous session's decline, investors returned to selective buying across sectors during early trade, supporting the market's opening gains.
According to experts, positive signals from international markets were the primary driver behind the strength in Indian equities. Expectations of easing geopolitical tensions involving the United States and West Asia improved global investor confidence. Stability in energy markets and lower crude oil prices also created a favourable environment for emerging markets, particularly oil-importing countries such as India. Analysts said investor confidence in Indian equities could strengthen further if global conditions remain supportive.
Major Asian equity markets traded with a mixed trend on Tuesday. Japan's Nikkei 225 advanced bly in early trade, while South Korea's Kospi Index also remained in positive territory, supported by buying in technology and industrial stocks.
Hong Kong's Hang Seng Index, however, traded marginally lower in early dealings as economic indicators related to China and cautious investor sentiment weighed on the market. Despite the mixed performance across Asian markets, Indian equities maintained their positive momentum.
Indian markets also drew support from the b performance of US equities overnight on Monday. Major US indices posted solid gains as investors increased buying in technology companies and blue-chip stocks, taking benchmark indices close to record levels. A resilient US economy, improved corporate earnings expectations, and the possibility of easing global tensions contributed to higher investor risk appetite, with the positive sentiment carrying over into Asian and Indian markets on Tuesday.
Global energy markets also provided encouraging signals for investors as both Brent crude and West Texas Intermediate (WTI) crude prices declined in international trading. Experts said expectations of easing tensions between the United States and Iran, along with the possibility of diplomatic talks, reduced concerns over global oil supply, keeping crude prices below key levels.
For India, a major oil-importing nation, lower crude oil prices are considered positive as they may reduce pressure on the import bill, inflation, and the current account deficit.
