Indian equity markets opened on a strong note on Wednesday, with benchmark indices advancing nearly 1 per cent each in early trade, buoyed by global cues and easing concerns over tensions in West Asia.
The Sensex climbed 0.85 per cent, or 657 points, to reach an intraday high of 77,675. The Nifty, however, rose 0.90 per cent, or 217 points, to trade at 24,250 compared to the previous close.
All sectoral indices traded in positive territory, with Nifty PSU Bank, Nifty Private Bank, Nifty Auto, Nifty Metal, and Nifty IT gaining up to nearly 2 per cent.
Some stocks, however, lagged within the Nifty pack, including Larsen & Toubro, Hindustan Unilever, ONGC, Power Grid, and ITC.
Market participants remained cautiously optimistic. The overall technical sentiment pointed to a bullish undertone, though sustaining levels above 24,250 on a closing basis was seen as key for further upside towards the 24,350-24,450 range.
On the downside, failure to hold 23,900 could trigger a decline towards the 23,800-23,700 zone.
Despite the positive opening, analysts indicated that the market could remain range-bound and volatile in the near term, with consolidation likely as key levels act as triggers.
Declining oil prices largely drove the upbeat mood. Prices fell for a second consecutive session due to expectations of improved supply from West Asia.
Brent crude dropped more than 2 per cent to $107.56 per barrel. West Texas Intermediate declined 3 per cent to $99.12 per barrel.
Geopolitical developments also influenced sentiment. Indications of a potential peace deal between the United States and Iran raised hopes of de-escalation. At the same time, the US Navy continued its blockade of Iranian ports.
Global markets mirrored the positive trend, with gains across Asia and a firm close on Wall Street.