Indian benchmark equity indices ended their five-session losing streak on Monday, driven by a sharp decline in crude oil prices after the United States and Iran paused military strikes, easing fears of a prolonged geopolitical conflict.
The Sensex surged 776.29 points (1.02%) to close at 76,835.78, while the Nifty gained 229.40 points (0.96%) to settle at 23,995.95, narrowly missing the 24,000 mark.
Market experts said the decline in crude oil prices significantly improved investor sentiment, particularly for India, one of the world’s largest crude oil importers, as lower oil prices raise hopes of easing inflationary pressures and reduced import costs.
Commenting on the Nifty’s technical outlook, an expert said, “If the Nifty moves and sustains above 24,000, we may witness a continuation of the uptrend towards 24,250–24,300. Failure to sustain above 24,000 might trigger a correction towards 23,800.”
Among Nifty stocks, Eternal, Inter Globe Aviation and Infosys emerged as the top gainers, leading the market recovery.
The rally extended across broader markets, with the Nifty Mid Cap index rising 1.11% and the Nifty Small Cap index gaining 1.31%.
Sectoral indices largely ended in positive territory, led by Nifty IT, Nifty Media and Nifty Realty.
The Nifty Realty, Nifty Pharma and Nifty Metal indices snapped their three-day losing streak, while the Nifty Oil & Gas index underperformed despite the broader rally.
Market participants also cited improving global sentiment, a stronger rupee, gains in IT stocks and encouraging corporate earnings as key factors supporting domestic equities.
An analyst said, “Global market dynamics have amplified these gains, with a plunge in crude oil prices, a retreat in the dollar index, and a renewed risk-on environment.”
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