Stock Market Today: Sensex, Nifty Rally On Sharp Decline In Crude Oil Prices

Domestic equity benchmark indices opened higher on Monday, supported by a sharp decline in global crude oil prices that lifted investor sentiment.

The Sensex rose 549.21 points, or 0.72 per cent, to 76,608.98 in early trade, while the Nifty gained 160.95 points, or 0.68 per cent, to 23,928.40.

All sectoral indices traded in positive territory during the opening session.

The Nifty MidSmall Financial Services index led the gains with a rise of 1.29 per cent, followed by Nifty IT, which advanced 1.25 per cent.

Nifty Media climbed 1.06 per cent, while Nifty FMCG added 1 per cent.

Among the other sectors, Nifty Auto gained 0.83 per cent, Nifty Chemicals rose 0.80 per cent, Nifty Private Bank advanced 0.80 per cent, Nifty Realty added 0.75 per cent, Nifty Metal climbed 0.73 per cent, and Nifty PSU Bank traded 0.72 per cent higher.

Market experts said the sharp fall in Brent crude prices from around $102 per barrel four days ago to nearly $93 per barrel on Monday morning has significantly improved market sentiment. They said that if tensions in West Asia continue to ease and crude prices decline further, Indian equities could witness a sustained short-term rally.

Analysts also noted that the recent correction in global semiconductor stocks and concerns surrounding the artificial intelligence (AI) trade could encourage foreign portfolio investors (FPIs) to increase allocations to Indian equities.

International oil prices remained under pressure, with Brent crude falling below $91 a barrel and WTI crude slipping under $85.

Asian markets were mixed, with gains in Japan and Hong Kong, while South Korea traded lower.

Also Read: India’s Forex Reserves Rise Again; RBI Reports $676.24 Billion Stockpile