Mumbai (Maharashtra) [India], March 11 : The domestic stock markets opened with modest gains on Wednesday as easing crude oil prices supported investor sentiment, even as geopolitical tensions in the Middle East continued to remain in focus.
The Nifty 50 index, soon after opening, was trading at 24,297.80, up by 32.75 points or 0.12 per cent, while the BSE Sensex surged to 78,274.93, gaining 81.05 points or 0.10 per cent.
Market experts said global cues, particularly movements in crude oil prices and developments in the Middle East, are influencing investor sentiment.
Ajay Bagga, Banking and Market Expert, told ANI that US markets initially rallied after the US Energy Secretary posted on social media that a tanker had passed through the Straits of Hormuz under a US Navy escort.
"Oil prices fell sharply and stocks in the US rallied on this positive development. However, that post was deleted and the White House clarified that no US Navy ship was in the Straits. US stocks ended slightly down on the clarification. However, Asian markets have opened strong this morning," Bagga said.
He added that there is hope that with the active mediation of Russia, some truce may be negotiated in the Middle East. With China also suffering from constrained oil and gas supplies from the Middle East, expectations are rising for a possible truce this week.
Bagga noted that Iranian drone strikes are continuing while intense bombing of Iran by the US and Israel is also ongoing, with rhetoric from both sides matching the intensity.
He further said oil prices are stable on hopes that the G7 leaders meeting today may lead to an announcement of a timeline for the release of Strategic Petroleum Reserves (SPRs) to cool the oil markets.
In the broader markets, Nifty 100 surged 0.06 per cent, Nifty Midcap 100 rose 0.62 per cent, and Nifty Smallcap 100 gained 0.79 per cent.
Among sectoral indices on the NSE, most sectors were trading in the green. Nifty Auto rose 0.09 per cent, Nifty IT gained 0.29 per cent, Nifty Media surged 1.31 per cent, Nifty Pharma was up 0.53 per cent, Nifty PSU Bank advanced 0.15 per cent, and Nifty Realty gained 0.57 per cent. However, Nifty FMCG slipped 0.10 per cent and Nifty Private Bank declined 0.65 per cent.
Crude prices have moved to the downward side but remain higher than last month's average and are currently trading at USD 87.73 per barrel.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said investors should closely watch some important market trends.
"One, the FII vs DII game is back to the last one-year pattern of sustained selling by FIIs being more than matched by sustained buying by DIIs. Given the continuing indifference of FIIs towards India and the sustaining inflows into Indian equity mutual funds, this game is likely to continue in the near-term," he said.
He added that despite market weakness, segments such as pharmaceuticals and domestic consumption themes like telecom, automobiles and defence are showing resilience.
In other Asian markets on Wednesday, Japan's Nikkei 225 surged 2.35 per cent to 55524, Hong Kong's Hang Seng rose 0.32 per cent to 26042, Taiwan's weighted index jumped 3.82 per cent to 34063, and South Korea's KOSPI gained 3.47 per cent to 5724.
However, Singapore's Straits Times index remained under pressure with a decline of 0.03 per cent to 4859.
Meanwhile, US markets on Tuesday closed almost flat with a mixed trend. The S&P 500 index declined 0.21 per cent to 6781, the Nasdaq index rose marginally by 0.01 per cent to 22697, while the Dow Jones index closed lower by 0.07 per cent to 47706.