Summary of this article
Sensex, Nifty opened higher as US-Iran tensions eased and crude prices fell
IT stocks led gains, while midcap and smallcap indices rose over 1 per cent
ONGC declined as lower crude prices weighed on oil and gas stocks
Equity benchmark indices opened higher on July 27 as signs of easing tensions in West Asia and a sharp fall in crude oil prices lifted investor sentiment across global markets.
The BSE Sensex rose 549.21 points, or 0.72 per cent, to open at 76,608.98. The NSE Nifty 50 also gained 160.95 points, or 0.68 per cent, to start the day at 23,928.40.
The rally came after the US stopped its air strikes on Iranian military targets late on July 24, ending 13 consecutive nights of attacks to allow room for diplomacy. A senior Iranian official told Reuters that Tehran would also stop its attacks as long as the US refrained from further strikes.
The de-escalation eased concerns over crude oil supply disruptions. Brent crude slipped to trade near $88 a barrel, falling as much as 6.50 per cent over the last two sessions, while West Texas Intermediate (WTI) declined towards $85 and was last trading about 7 per cent lower.
Global Markets Rally, But Cautiously
Asian markets started the session on a positive note after the US and Iran paused hostilities, raising hopes that the conflict may not escalate further. However, the initial optimism faded as the session progressed, with most regional indices giving up early gains to trade in a narrow range.
At the time of writing, Japan's Nikkei 225 was up 0.27 per cent, China's CSI 300 gained 0.25 per cent and Hong Kong's Hang Seng advanced 0.81 per cent. Meanwhile, South Korea's Kospi slipped 0.60 per cent and Taiwan's Taiex declined 0.55 per cent.
Wall Street ended mixed on July 24, as investors refrained from taking aggressive bets ahead of this week's US Federal Reserve policy decision and earnings from some of the world's biggest technology companies. The Dow Jones Industrial Average rose 0.46 per cent, while the S&P 500 edged up 0.05 per cent. The Nasdaq Composite, however, fell 0.64 per cent as semiconductor stocks remained under pressure amid concerns over elevated spending on artificial intelligence infrastructure.
Broader Market Mirror Optimism In Benchmarks
The rally was not limited to frontline stocks. The broader market also witnessed strong buying, with the Nifty Midcap 100 and the Nifty Smallcap 100 rising more than 1 per cent each.
Among sectoral indices, Nifty IT emerged as the top gainer, climbing around 2.50 per cent. The rally was led by Infosys, Tata Consultancy Services (TCS), Coforge, Mphasis and Oracle Financial Services Software, with all IT stocks trading in the green.
Buying interest was also seen across other sectors. Nifty Realty, Nifty Media, Nifty Pharma and Nifty Healthcare gained more than 1 per cent each. Meanwhile, Nifty Auto, Nifty FMCG, Nifty Metal and Nifty Consumer Durables rose nearly 1 per cent. All other sectoral indices were also trading with gains.
The Nifty Bank index, which tracks the performance of the country's 14 largest and most liquid banking stocks, was up around 0.6 per cent, adding to the overall positive market sentiment.
Nifty 50 Top Gainers And Losers
Among the Nifty 50 stocks, Infosys emerged as the top gainer, rising over 3 per cent. It was followed by Eternal (formerly Zomato), Asian Paints, InterGlobe Aviation (IndiGo), TCS, Bajaj Finance, HCL Technologies and Tech Mahindra, which gained between 2 per cent and 3.2 per cent.
On the other hand, ONGC was the biggest loser on the benchmark index, falling 2.65 per cent as crude oil prices tumbled. SBI Life Insurance and Adani Ports also traded lower, slipping between 0.5 per cent and 1 per cent.
