NEW DELHI: A sharp fall in global crude oil prices and a strong recovery in domestic currency caused equity benchmarks Sensex and Nifty to register a gap-up opening on Wednesday.
Global crude oil prices declined after prospects of a tight supply faded on Saudi Arabia's assurance that it will help maintain oil supply after US sanctions on Iran comes into effect from November 4.
As per Reuters, Morgan Stanley said "recent trends in refining margins, time spreads and inventories suggest a spell of weakness in oil markets."
The US dollar also weakened weighed by a decline in US treasury yields.
Following a fall in crude oil prices and US dollar, domestic currency witnessed a positive opening today. The domestic unit opened 41 paise higher at 73.16.
Sensex jumped over 450 points, while Nifty touched 10,290 in early deals amid a fresh spell of buying across sectors.
The NSE Nifty index was trading 113 points up at 10,260, while the BSE Sensex was up 326 points at 34,173 around 09:30 am.
In the Sensex index, only two stocks – Wipro and Tata Consultancy Services – were trading in the red.
ICICI Bank, Tata Motors, Asian Paints, Mahindra & Mahindra and Bharti Airtel were leading among Sensex gainers.
BSE Midcap and Smallcap indices advanced, up 1 per cent each, in-line with Sensex.
Among the sectoral indices, barring IT and teck, all were trading with gains on BSE.
Wipro, Tech Mahindra, NIIT Tech, Mindtree and TCS dragged the BSE IT index down.
Asian Peers also rebounded in trade. Shanghai SE Composite Index and Hang Seng climbed 1 per cent. Nikkei was up about half-a-per cent.
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