Sensex, Nifty 50 open higher on softer crude, robust foreign buying

Indian shares opened at eight-month highs on Wednesday after a holiday break, buoyed by plunging crude prices and strong foreign inflows.

The NSE Nifty 50 rose 1.17% to 25,337.8 points and the S&P BSE Sensex gained 1.41% to 82,248.68 as of 9:15 a.m. IST, their highest levels since 27 February. All the 16 major sectors opened higher. The broader small-caps and mid-caps gained 0.7% each. Indian markets were closed on Tuesday for Diwali.

Brent crude futures slid to a two-month low of $89.16 per barrel on Tuesday after US officials played down the need for additional military action against Iran, easing concerns over supply disruptions. Prices were up 0.5% at $92 on Wednesday.

The Nifty 50 and the BSE Sensex have gained about 10% so far this month as easing crude oil prices, strong domestic earnings and a selloff in global chipmakers brought foreign portfolio investors (FPIs) back to India.