Equity benchmarks rose early on Wednesday, extending gains from previous session, with the Sensex index breaching the 60,000 level, tracking a fall in oil prices that dropped to their lowest level since mid-February amid concerns over global growth outlook.
Indian stocks opened higher as a softening inflation print steered expectation of slowing pace of interest rate hikes, with sentiment boosted by that fall in crude prices and strength in Asia from global markets.
The 30-share BSE benchmark index was trading 141.62 points higher at 59,983.83 in early deals. Soon, it jumped to 60,008.11 points, higher by 165.9 points.
The broader NSE Nifty climbed 48.25 points to 17,873.50 points.
From the Sensex pack, NTPC, Hindustan Unilever, Bajaj Finance, Asian Paints, UltraTech Cement, Reliance Industries and Bajaj Finserv were the biggest gainers.
On the other hand, Tata Consultancy Services, Infosys, HDFC and HDFC Bank were among the laggards.
Among the Nifty 50 stocks, 37 advanced, 12 declined and 1 traded steady, National Stock Exchange data showed.
Both the benchmark indexes had ended Tuesday on a high note, extending weekly advances into the fifth consecutive week.
The benchmark bourses have recovered all of the losses they suffered in 2022 because to gains of nearly 11 per cent over the past four weeks. Since February 2021, the domestic equity markets' greatest week has been in July.
The broader NSE Nifty 50 index achieved its best level since April 5 at closing in the previous session, and extended that winning streak to a seventh straight day.
Twenty-two of the 43 companies listed on the Nifty 50 index outperformed analysts' expectations for earnings results in the June quarter, according to Reuters, which cited Refinitiv Eikon data. By Friday, nearly all Indian companies had released their earnings reports.
Analysts anticipate an improvement in the second half of the year for Indian businesses, driven by a decline in commodity prices that will relieve margin pressure.
Before statistics revealed that India's consumer inflation fell to 6.71 percent in July, helped by a slower increase in food and fuel costs, both the key bourses finished Friday on a high note, extending gains for a fourth straight week and recording the longest winning streak since January.
Inflows of foreign capital have helped to boost the currency and domestic equity markets. Foreign Institutional Investors (FIIs) were net buyers in the Indian capital market as they bought shares worth Rs 1,376.84 crore on Tuesday, according to the latest exchange data.
After turning net buyers last month, foreign investors have continued to invest in Indian equities and have pumped in ₹ 22,452 crore in the first two weeks of August.
What has helped Asia's third-largest economy is that crude prices have fallen significantly, which is good news for a country that imports over three-fourth of its oil needs.
Brent crude prices recovered somewhat from six month lows after it dropped around 3 per cent to tumble to close to $92 a barrel on Tuesday amid worries about a probable global economic slowdown.
The drop in oil prices to levels last seen before Russia invaded Ukraine is expected to allay worries about India's huge trade deficit and inflation prospects as the country's trade imbalance for July was $30 billion, and for seven consecutive months, consumer inflation has exceeded the Reserve Bank of India's upper tolerance limit.
Traders wait for clarification on talks to resurrect a deal that may allow for additional Iranian oil shipments.
Asian shares tracked solid Wall Street performance as strong overnight earnings for US retail giants pointed to further scope for the Federal Reserve to tackle inflation with rate hikes.