With the bulls turning aggressive after largely staying away on the sidelines in the previous session, the Indian stock market is on a high Wednesday morning.
The BSE benchmark has soared to a new all-time high, rising to 36,612.60, gaining 346.67 points or 0.96% in the process. The National Stock Exchange's Nifty50 is up 108.20 points or 0.99% at 11,056.50, still some way off its record high of 11,171.55.
Crude oil's sharp plunge on Wednesday has contributed significantly to the gains in the Indian market this morning. Oil's slide has helped ease concerns about inflation and trade deficit. With India relying on imports for its oil requirements, a sharp fall in crude prices augurs well for the economy.
Also, investors are betting on hopes India Inc will report some robust earnings results for the quarter ended June 2018. Tata Consultancy Services has already come out with impressive first quarter numbers, and thanks to hectic buying in the TCS counter, the market managed to close on a slightly positive note on Wednesday.
The market is awaiting industrial production data for May 2018, due after trading hours today. In April, India's industrial output grew 4.9% year-on-year, following an upwardly revised 4.6% growth in the preceding month.
Data on consumer price inflation for the month of June is also due out later in the day.
Crude oil suffered its worst single session slide in two years on Wednesday as concerns about demand due to the ongoing U.S. - China trade war and reports that Libya is set to resume capacity oil production soon triggered heavy selling in the oil market. Reports that the U.S. government might consider extending sanctions relief to some buyers of Iranian crude beyond the previously announced November deadline, contributed as well to oil's slide.
Crude oil futures for August delivery tumbled 5% to settle at $70.38 a barrel on the New York Mercantile Exchange, recording their lowest close in more than 2 weeks.
Thanks to crude oil's slide, shares of state-run oil marketing companies have moved up sharply. Hindustan Petroleum Corporation is up 4.2%, BPCL is higher by about 3.75% and Indian Oil Corporation is up 3.2%.
Other major gainers in the Nifty fold are, Yes Bank, Reliance Industries, Dr Reddy's Laboratories, Bajaj Finance, Bajaj Financial Services, UltraTech Cement, Hindalco and State Bank of India, which are trading higher by 2% - 3.4%.