Sensex, Nifty surge 1 pc in early trade over de-escalation hopes, assembly poll result trends

Mumbai, May 4 (IANS) Indian equity benchmarks opened on a strong note on Monday, with indices gaining 1 per cent each in the morning trade, aided by softer crude oil prices amid indications of easing tensions in West Asia amid early Assembly election trends in key states.

Sensex surged as much as 833 points or 1.08 per cent to hit an intraday high of 77,746.79 in early deals, while Nifty touched 24,245.85, up 250 points or 1.03 per cent.

On the sectoral front, buying interest was seen across auto, realty, metal, FMCG and energy stocks, with Nifty Auto, Nifty Realty, Nifty Metal, Nifty FMCG and Nifty Oil & Gas indices gaining up to nearly 2 per cent.

However, some stocks remained under pressure, with Kotak Mahindra Bank, Dr Reddy’s Laboratories, TCS, Eternal, ITC, and Bharti Airtel among top losers on from the 50-scrip basket.

US President Donald Trump said the United States will initiate efforts to help vessels stranded in the Strait of Hormuz, describing the move as a 'humanitarian gesture' aimed at assisting neutral countries not involved in the ongoing US-Israeli conflict with Iran.

Tehran, meanwhile, said Washington has responded to its 14-point peace proposal via Pakistan and that the reply is under review, though Trump signalled it may not be acceptable.

Back home, results of Assembly elections in four states, including Tamil Nadu and West Bengal, and one Union Territory are due during the session, which could lend a near-term sentiment-driven bias to markets, particularly tracking West Bengal trends.

According to market experts, the underlying market direction will hinge on crude oil prices, which remain sensitive to developments in West Asia. Trump’s remarks on facilitating safe passage through the Strait of Hormuz have already weighed on oil prices.

Brent crude fell 66 cents or 0.61 per cent to $107.51 per barrel, while US West Texas Intermediate (WTI) declined $2.83 or 2.77 per cent to $99.11 a barrel.

In global equities, Asian markets traded higher, with Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s KOSPI rising up to 4 per cent.

--IANS

ag/na