Mumbai, June 24: Indian equity markets traded within a narrow range on Wednesday morning as investors assessed improving macroeconomic conditions and sector-specific opportunities. Lower crude oil prices and a stable rupee helped support sentiment, although caution persisted due to concerns over below-normal monsoon rainfall.

The benchmark Sensex and Nifty posted modest gains in early trade, extending the subdued movement seen in the previous session. Market activity remained selective, with investors favouring sectors expected to benefit from current economic trends.

Information technology stocks led the gains, emerging as the strongest performers among major sectors. Healthcare and pharmaceutical shares also attracted buying interest, reflecting investor preference for relatively defensive sectors. Banking stocks traded in positive territory, lending additional support to the broader market.

Meanwhile, metal and automobile stocks faced mild selling pressure as traders booked profits and reassessed near-term growth prospects.

The decline in global crude oil prices has provided relief for India by reducing inflationary pressures and easing concerns over import costs. A more stable currency and reduced foreign investor outflows have further strengthened market confidence.

Despite these positives, market participants continue to monitor the progress of the monsoon season. Lower-than-expected rainfall could affect rural demand and consumer spending, particularly in sectors closely linked to agricultural incomes.

Analysts expect markets to remain driven by sector-specific developments and economic indicators in the near term, with investors maintaining a balanced approach amid mixed signals from domestic and global markets.