The benchmark Brent crude traded on Wednesday at below the $55 a barrel level, even as Coronavirus-related deaths in China crossed the 400-mark. The recent outbreak of the virus epidemic has resulted in Chinese oil consumption falling by over 20 per cent.
The benchmark Sensex advanced 353.28 points to settle on Wednesday at 41,142.66, while the Nifty jumped to 12,089, closing higher by 109 points.
"Indian markets are mirroring the global markets and trading on a higher note powered by rate-sensitive stocks. With the over-reaction following the Budget mostly done with, focus will now shift to how global events and Q3 results pan out," said Vinod Nair, Head of Research, Geojit Financial Services.
On the RBI's upcoming monetary policy review, Shanti Ekambaram of Kotak Mahindra Bank said that inflation is likely to trend at a level higher than the central bank's target this quarter of 4-4.5 per cent.
"Against this backdrop, the RBI is likely to maintain status quo on rates as well as its monetary policy stance. They are likely to continue an accommodative stance to support growth," Ekambaram said.
In this connection, advisory firm IHS Markit said on Monday that the Manufacturing PMI index rose from 52.7 in December to 55.3 in January, touching its highest level in just under eight years. According to analysts, the recovery in manufacturing has been a big positive for the markets.
( With inputs from IANS )