Sensex, Nifty Edge Higher in Early Trade on Lower Crude, Reliance Buying

Mumbai: Indian equity benchmarks opened on a positive note on Thursday, with the Sensex and Nifty trading higher in early deals. A softening in global crude oil prices and fresh buying in index heavyweight Reliance Industries lent support to the market, even as broader sentiment remained cautious.

Crude oil prices lend a hand

Lower international crude oil prices helped ease concerns over inflation and input costs, providing a tailwind for domestic equities. A dip in oil prices typically benefits India, a major importer, by reducing the country's import bill and easing pressure on corporate margins.

Traders said the decline in crude offered some comfort to investors who have been wary of persistent global headwinds. The positive opening came despite mixed cues from other Asian markets.

Reliance Industries leads the charge

Buying in Reliance Industries, the country's most valuable company by market capitalisation, was a key driver of the early gains. The stock's upward move helped lift the benchmark indices, given its heavy weightage in both the Sensex and the Nifty.

Market participants attributed the buying to value-seeking by investors after recent consolidation. However, analysts remained cautious about the sustainability of the uptrend, citing global macroeconomic uncertainties.

Broader market cues

While the headline indices traded in the green, the broader market showed a mixed trend. Advances and declines were almost evenly matched in early trade, suggesting that the rally was selective rather than broad-based.

Sectoral indices were mixed, with oil & gas and banking stocks showing some strength, while IT and pharma faced mild selling pressure. The rupee, too, was range-bound against the US dollar in early deals.

What to watch

Investors will be keeping an eye on global crude oil movements and any fresh cues from foreign institutional investment flows. The market's ability to hold gains through the session will depend on sustained buying in heavyweights and the absence of any negative surprises on the geopolitical or macro front.

With no major domestic triggers scheduled for the day, traders are likely to take direction from global markets and the movement in commodity prices.