Mumbai, May 6 (IANS) Indian equity markets traded higher on Wednesday in early deals, with benchmarks jumping almost 1 per cent each on global cues, amid hopes of de-escalation in the West Asia conflict.

Sensex rose 0.85 per cent or 657 points to hit an intraday high of 77,675 in morning trade, while Nifty was trading at 24,250, up 0.90 per cent or 217 points from the previous close.

Among sectoral indices, Nifty PSU Bank, Nifty Private Bank, Nifty Auto, Nifty Metal, and Nifty IT advanced up to nearly 2 per cent, with all sectors trading in positive territory. Meanwhile, Larsen & Toubro, Hindustan Unilever, ONGC, Power Grid, and ITC were the top laggards in the Nifty pack.

Analysts struck a cautiously optimistic note. “Technically, the market sentiment is cautiously bullish, but a sustained daily close above 24,250 is needed to extend the rally towards 24,350–24,450. If 23,900 is not held, the index could test the 23,800–23,700 zone,” an expert said.

On the broader technical setup, another analyst noted that while the opening was positive, trade was likely to remain range-bound and volatile. “The broader trend remains constructive, but the short-term structure suggests consolidation, with key levels acting as triggers.”

Optimism was driven by oil prices falling for a second consecutive session on hopes that bottled-up West Asia supply could resume flowing.

Moreover, US President Donald Trump indicated a possible peace deal with Iran, briefly pausing an escort operation through the Strait of Hormuz, citing progress toward a comprehensive agreement. Tehran has not responded to Trump’s comments.

The US Navy, however, continues its blockade of Iranian ports.

In commodities, global oil benchmark Brent crude dropped more than 2 per cent to $107.56 per barrel, while the US benchmark West Texas Intermediate (WTI) fell 3 per cent to $99.12 per barrel.

On the global front, markets showed positive momentum. In Asia, the Nikkei rose 0.71 per cent, the Hang Seng jumped over 1 per cent, and the KOSPI was up nearly 7 per cent.

On Wall Street, the S&P 500 closed 0.81 per cent higher and the Nasdaq settled up 1 per cent.

–IANS

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