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Sensex, Nifty Rise 0.5% in Early Trade Despite Oil Surge, Geopolitical Tensions

Domestic equity markets opened higher on Wednesday despite rising crude oil prices and geopolitical tensions. Sensex gained 0.52 per cent or 400 points to 77,289.55, while Nifty rose 0.53 per cent to 24,123.55. Sector-wise, auto, chemicals, realty, energy and IT stocks witnessed buying interest. Oil prices continued to surge on reports that the United States may extend its blockade of Iranian ports.

Key Points: Sensex, Nifty Gain in Early Trade on Wednesday

  • Sensex gains 400 points to 77,289.55
  • Nifty rises 127.8 points to 24,123.55
  • Auto, IT, realty stocks lead gains
  • Oil prices surge on US-Iran tensions
2 min read

Sensex, Nifty gain in early trade despite geopolitical tensions, rising oil prices

Sensex rises 400 points and Nifty gains 128 points despite rising oil prices and US-Iran tensions. Auto, IT, and realty stocks lead the rally.

"Despite key developments in the Gulf region, there is no immediate resolution to the energy crisis triggered by the closure of the Strait of Hormuz. - Market experts"

Mumbai, April 29

Domestic equity markets traded higher on Wednesday despite a rise in crude oil prices and reports that the United States may extend its blockade of Iranian ports.

Sensex traded 0.52 per cent, or 400 points, higher at 77,289.55, hitting an intraday high in early trade, while Nifty rose 0.53 per cent, or 127.8 points, to 24,123.55.

Sector-wise, buying interest was seen in auto, chemicals, realty, energy and IT stocks.

Nifty Auto, Nifty Chemicals, Nifty Realty, Nifty Oil & Gas, and Nifty IT indices were up 1.61 per cent, 0.94 per cent, 0.89 per cent, 0.72 per cent, and 0.57 per cent, respectively.

Top laggards included Hindalco Industries, JSW Steel, Dr Reddy's Laboratories, Tata Steel, ICICI Bank, Asian Paints and SBI Life.

According to market experts, despite key developments in the Gulf region, there is no immediate resolution to the energy crisis triggered by the closure of the Strait of Hormuz.

Analysts also noted that oil prices surged further on reports that the United Arab Emirates may exit OPEC, exacerbating supply concerns.

Oil prices climbed on Wednesday, extending their recent rally, following reports that the United States may prolong its blockade of Iranian ports, potentially worsening supply disruptions from the key Middle East producing region.

Additionally, US President Donald Trump has directed aides to prepare for an extended blockade of Iran.

Brent crude rose 0.63 per cent to $111.97 per barrel, while US WTI crude gained 0.81 per cent to $100.74.

Global market cues were mixed. In Asia, Japan's Nikkei was down 1 per cent, Hong Kong's Hang Seng gained 1 per cent, while South Korea's Kospi traded marginally higher.

In the US, Wall Street ended on a negative note, with the Nasdaq falling 0.90 per cent and the S&P 500 closing 0.5 per cent lower.

- IANS

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Reader Comments

P
Priya S
The resilience of Indian markets always surprises me. While global cues are mixed and oil prices are climbing, our auto and IT stocks are shining. But I'm a bit worried about the US blockade of Iran - that could send petrol prices through the roof in India. Time to check my mutual fund portfolio!
V
Vikram M
People cheering this rally don't understand the bigger picture. Oil at $111 is dangerous for India's import bill and current account deficit. The government needs to be proactive, not reactive. Our economy is too dependent on imported energy. This is a short-term pump, not sustainable growth. 📉
J
James A
As an NRI watching from the US, this is fascinating. Your markets are defying gravity despite the Strait of Hormuz situation. But the UAE possibly leaving OPEC could be a game-changer - might ease supply concerns long-term. Short-term, buckle up for volatility. India's domestic consumption story keeps attracting global money. 🚀
S
Siddharth J
Auto sector rallying despite higher input costs from crude oil? That's confusing. Maybe the market is pricing in a strong festive season demand. But Dr Reddy's and Hindalco falling says there are still concerns. I think this is a 'buy on dips' market for long-term investors, but short-term traders should be careful.
M
Michael C
For a country that imports 85% of its oil, these price levels are worrying. But I've learned that Indian markets often trade on domestic liquidity and sentiment rather than global news. The real test will be when oil hits $120. Let's hope RBI has a plan for inflation. 😕

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