Mumbai, Aug 6: Indian benchmark equity indices opened higher on Thursday, buoyed by optimism surrounding a possible US-Iran peace agreement and stronger-than-expected corporate earnings for the June quarter.
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The BSE Sensex opened 200 points, or 0.25 per cent, higher at 78,782.43, while the NSE Nifty50 began the session at 24,632.65, up 8 points, or 0.03 per cent.
Buying interest was seen in information technology, chemicals, pharmaceuticals and healthcare stocks, with the Nifty IT, Nifty Chemicals, Nifty Pharma and Nifty 500 Healthcare indices gaining up to 0.50 per cent in early trade.
However, cement, metal, automobile and realty stocks remained under pressure. The Nifty Cement, Nifty Metal, Nifty Auto and Nifty Realty indices declined by as much as 0.52 per cent.
Among the Nifty50 stocks, Trent, Mahindra & Mahindra, NTPC, Power Grid, Bajaj Finance, Bharti Airtel, ONGC, Hindalco Industries, JSW Steel, Kotak Mahindra Bank, Maruti Suzuki, Tata Steel and Bajaj Auto were among the early laggards.
Market sentiment was also influenced by institutional flows. Foreign Institutional Investors (FIIs) remained net sellers on Wednesday, offloading equities worth Rs 943 crore. In contrast, Domestic Institutional Investors (DIIs) continued to support the market, purchasing shares worth Rs 2,883 crore.
Investor confidence received an additional boost from reports suggesting progress towards a proposed agreement aimed at easing tensions between the United States and Iran. The reports indicated that Iran could gain greater oversight of vessels entering the Gulf through the Strait of Hormuz, a development viewed as a significant geopolitical concession.
Meanwhile, crude oil prices eased in international markets. Brent crude fell 0.51 per cent to remain below the $80-a-barrel mark, while US West Texas Intermediate (WTI) crude declined 0.77 per cent to $74.64 per barrel, providing further support to market sentiment.