Sensex and Nifty opened higher on Wednesday, with attention turning to the launch of Jio Platforms’ record IPO, although elevated crude oil prices could limit gains.
BSE Sensex rose over 752 points and was hovering at around 74,605.28 at around 9:34 am on Wednesay.
Positive sentiments over a potential US-India trade deal were also expected to support investor sentiment. US Secretary of State Marco Rubio told CNN News18 on Tuesday that he expected Washington and New Delhi to reach a trade deal within weeks, rather than months.
GIFT Nifty futures stood at 23,017 at 7:57 am, signalling a positive opening for the benchmark Nifty 50, which closed at 22,888.95 on Monday, according to figures cited in a Reuters report. Stock markets remained closed on Tuesday in view of Dusshera.
The Nifty 50 and BSE Sensex fell more than a per cent each on Monday after private lenders HDFC Bank and Axis Bank reported lower net interest margins over the weekend.
Jio Platforms’ $3.2 billion (approximately Rs30,400 crore) IPO opens for subscription later on Wednesday. The telecoms, cloud and AI group raised $853.3 million (approximately Rs8,106.35 crore) from marquee anchor investors, including Abu Dhabi Investment Authority, BlackRock and Fidelity, ahead of what is set to be India’s record IPO.
Shares of Bajaj Finance were also in focus after the non-bank lender reported a 28.7 per cent year-on-year increase in quarterly profit on Monday, supported by strong loan-book growth.
However, elevated crude oil prices were expected to impact market sentiment.
Oil prices were also in focus after Brent crude futures rose more than a per cent to $110 a barrel, with investors wary of disruptions to Red Sea shipping and threats to oil infrastructure in Saudi Arabia.
Higher oil prices are negative for India, which imports a bulk of its energy requirements, as they can increase the import bill, strain the fiscal deficit and hurt corporate profits.