The Sensex and Nifty both rose sharply in early trade on Wednesday, owing to bullish global market trends and foreign money inflows. Buying in index heavyweights Reliance Industries and Infosys boosted optimism as well.

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In early trade, the Sensex rose 755.9 points to 55,523.52. Similarly, the Nifty rose 224.9 points to 16,565.45.

In early trade, all Sensex members were trading in the green, with Reliance Industries, Tech Mahindra, Infosys, Tata Consultancy Services, IndusInd Bank, and Titan leading the way.

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Markets in Tokyo, Seoul, Shanghai, and Hong Kong were much higher in Asia. The US markets finished significantly higher on Tuesday as well.

“The sharp 8% pullback in Nifty from June lows of 15,183 is all set to continue aided by a flood of good news. First, the US markets have rebounded sharply driven by impressive corporate earnings. Second, FPI selling appears to have bottomed out. FPIs have bought 5 days this month,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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“Third, the relief announced by the government for the petroleum sector through a reduction in windfall tax and cuts in duties on exports will be a major boost for the sector, particularly for RIL,” he added.

Following a drop in international rates, the government reduced the windfall tax on petrol, diesel, jet fuel, and crude oil on Wednesday.

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On Tuesday, the Sensex rose 246.47 points, or 0.45%, to close at 54,767.62. The Nifty rose 62.05 points (0.38%) to 16,340.55.

According to exchange statistics, foreign institutional investors continued to be net purchasers on Tuesday, purchasing shares worth Rs 976.40 crore.

Separately, the international oil benchmark Brent crude fell 0.39% to USD 106.93 per barrel. The rupee fell 4 paise to 79.96 against the US dollar in early trade on Wednesday, owing to strong dollar demand from oil importers and steady crude oil prices.