Mumbai, Jun 16: Benchmark indices Sensex and Nifty rallied in early trade on Tuesday, driven by a positive trend in global markets and cooling crude oil prices following a peace deal between the US and Iran.
Fresh foreign fund inflows also added to the positive trend in the domestic market.
The 30-share BSE Sensex climbed 272.87 points to 76,537.20 in early deals. The 50-share NSE Nifty went up by 69.15 points to 23,921.55.
From the 30-Sensex firms, HCL Tech, Bajaj Finance, Bajaj Finserv, Hindustan Unilever, Tech Mahindra and Tata Consultancy Services were among the biggest winners.
Axis Bank, Tata Steel, Power Grid and UltraTech Cement were among the laggards.
Brent crude, the global oil benchmark, traded 0.32 per cent lower at USD 82.90 per barrel.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index and Shanghai’s SSE Composite index were quoting higher, while Hong Kong’s Hang Seng index traded lower.
US markets ended in positive territory on Monday. The Nasdaq Composite jumped 3.07 per cent, S&P 500 surged 1.65 per cent and Dow Jones Industrial Average climbed 0.92 per cent.
Foreign Institutional Investors (FIIs) turned buyers on Monday as they bought equities worth Rs 200.05 crore, according to exchange data.
“Global cues continue to remain supportive, with US markets rallying sharply overnight. The Nasdaq surged over 3 per cent, while the S&P 500 and Dow Jones closed at fresh record highs, reflecting renewed optimism amid easing geopolitical concerns and improving risk sentiment.
“Brent crude’s sharp decline is a key positive for Indian equities, while sustained domestic institutional buying continues to provide stability to the market,” Rajesh Palviya, Head of Research, Axis Direct, said.
The US and Iran reached an agreement on Sunday to reopen the Strait of Hormuz, a move expected to facilitate the resumption of oil and natural gas shipments through one of the world’s most important energy transit routes.
Details of the agreement have not been made public.
Iran has indicated implementation will begin only after a formal signing ceremony, which Pakistan, a key mediator in the negotiations, said is scheduled to take place in Switzerland on Friday.
On Monday, the Sensex jumped 736.38 points, or 0.97 per cent, to settle at 76,264.33. The Nifty surged 231 points, or 0.98 per cent, to end at 23,853.90.
