MUMBAI: Indian benchmark equity indices, the BSE Sensex and NSE Nifty, managed to stage a positive comeback in early trading sessions on Wednesday. The upward momentum was primarily fueled by a moderation in global crude oil prices, which offered much-needed breathing room for the country's macroeconomic fundamentals.

The 30-share BSE Sensex climbed 283.66 points to open at 74,812.74, while the broader 50-share NSE Nifty moved up by 85.55 points, reaching 23,414.55 in early exchanges.

Market Movers and Laggards

During the early trade window, market heavyweights witnessed mixed trends. Leading the pack of winners on the Sensex index were prominent names like Bajaj Finance, Bajaj Finserv, Tata Steel, UltraTech Cement, Larsen & Toubro, and Asian Paints.

On the flip side, major IT and auto heavyweights faced selling pressure. Tech majors such as Tata Consultancy Services (TCS), Infosys, alongside HDFC Bank and Mahindra & Mahindra, traded in the red, acting as major drags on the indices.

Macro Factors: Crude Relief vs. FII Outflows

Global crude oil benchmarks offered a cushion to domestic sentiment. Brent crude, the international standard, traded 0.97 per cent lower down at USD 98.29 per barrel.

Market experts pointed out that while cheaper crude helps ease concerns over India's import bills and domestic inflation, underlying risks persist.

"The moderation in crude prices offers some relief on the broader macroeconomic front, particularly for India given its dependence on imported energy. However, continued foreign investor selling remains a key headwind for domestic equities, particularly as uncertainty over the Middle East continues to weigh on global risk appetite," said Ponmudi R, CEO of Enrich Money.

Data from stock exchanges revealed that Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 3,809.99 crore in the previous session.

Global Cues and Previous Close

Asian markets displayed a mixed trend during the session; South Korea’s Kospi traded in positive territory, whereas Shanghai's SSE Composite and Hong Kong's Hang Seng index experienced downward movement. Meanwhile, Wall Street closed on a mixed note overnight, with technology stocks finding support on the Nasdaq while the Dow finished lower.

In the previous trading session on Tuesday, domestic indices faced intense correction. The BSE Sensex had declined 329.91 points (0.44 per cent) to settle at 74,529.08, while the Nifty dipped 85.30 points (0.36 per cent) to end at 23,329. Analysts advise investors to remain cautious, keeping a close eye on incoming global geopolitical developments and institutional fund flows.