NEW DELHI: Benchmark indices opened higher on Thursday amid a sharp fall in crude oil prices and ahead of data on US crude oil inventories later in the day. The sentiment was also lifted by an overnight rise in US stocks as investors there absorbed the minutes of the recent Fed review.
At 9.17 am, the BSE Sensex was trading 432 points or 0.81 per cent higher at 54,183.70. Nifty50 was trading at 16,138.05, up 148 points or 0.93 per cent. Midcap and smallcap indices rose up to 0.80 per cent.
Among Sensex stocks,
climbed 6.34 per cent to Rs 2,141. , , Mahindra & Mahindra and gained up to 2 per cent, respectively.
advanced over 1 per cent to Rs 735.85. , , Larsen & Toubro, and added up to 1.2 per cent. , , and fell up to 0.53 per cent.
Earlier in the day, Brent crude futures declined 94 cents or 0.9 per cent to $99.75 a barrel after hitting a low of $98.50. WTI crude futures fell 79 cents or 0.8 per cent to $97.74 a barrel. Both benchmarks had closed at their lowest since April 11 in the previous session, following a dramatic 8-9 per cent plunge on Tuesday.
“The sharp correction in crude, commodities like metals, and the declining trend in edible oil indicate that inflation will come under control soon. Taking cues from these indicators the bulls have again turned buyers and the near-term structure of the market has turned clearly bullish now,” said VK Vijayakumar, Chief Investment Strategist at
.
The crash in commodities and RBI’s latest initiatives to increase foreign currency inflows have the potential to arrest further depreciation in rupee, Vijayakumar said, adding that it would mean FPIs are unlikely to dump more equities.
Meanwhile, the market was also awaiting the kick start of earning season with
results on Friday.
“We expect net profits of the BSE-30 to increase 23 per cent YoY but decline 10 per cent QoQ and for the Nifty-50 to increase 27 per cent YoY but decline 11 per cent QoQ. We estimate EPS of the BSE-30 Index at Rs 2,647 for FY2023 and Rs2,991 for FY2024 and of the Nifty-50 at Rs 806 for FY2023 and Rs 932 for FY2024,” said Kotak Institutional Equities in a note.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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