Indian benchmark equity indices, Sensex and Nifty, experienced a significant surge of over 1 per cent, propelled by a sharp drop in crude oil prices below $100 per barrel and optimistic global sentiment surrounding potential US-Iran negotiations.
Photograph: Savita Kirloskar/Reuters
Key Points
- Indian benchmark equity indices, Sensex and Nifty, both surged over 1 per cent, with the Sensex gaining 1,073.61 points and the Nifty rising 312.40 points.
- The rally was primarily driven by a sharp correction in Brent crude oil prices, which tanked 5.52 per cent to $97.82 per barrel.
- Improving sentiment around potential US-Iran negotiations to reopen the Strait of Hormuz contributed to the positive global market trend.
- Major gainers among Sensex firms included Bajaj Finance, Larsen & Toubro, HDFC Bank, Eternal, Bajaj Finserv, and Kotak Mahindra Bank.
- Despite the market rally, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,440.47 crore in the previous session.
Benchmark equity indices Sensex and Nifty surged over 1 per cent on Monday, driven by a sharp correction in crude oil prices and a rally in global markets amid improving sentiment surrounding the US-Iran negotiations.
The 30-share BSE Sensex jumped 1,073.61 points, or 1.42 per cent, to settle at 76,488.96. During the day, it soared 1,143.72 points, or 1.51 per cent, to 76,559.07.
Market Performance and Key Movers
The 50-share NSE Nifty surged 312.40 points, or 1.32 per cent, to end at 24,031.70.
From the 30-Sensex firms, Bajaj Finance, Larsen & Toubro, HDFC Bank, Eternal, Bajaj Finserv, and Kotak Mahindra Bank were among the biggest winners.
In contrast, Infosys, Tata Consultancy Services, Sun Pharma and Hindustan Unilever were the laggards.
Crude Oil and Global Sentiment
Brent crude, the global oil benchmark, tanked 5.52 per cent to $97.82 per barrel.
The US has made significant progress in negotiations with Iran to reopen the Strait of Hormuz, but President Donald Trump is maintaining a cautious approach and will not accept a bad deal, Secretary of State Marco Rubio said on Monday.
“Markets witnessed strong positive momentum, driven by a correction in crude oil prices amid rising expectations of a potential US-Iran deal. Global sentiment improved on reports of progress towards reopening the Strait of Hormuz, although credibility remains uncertain given frequent shifts in developments,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
International Market Overview
In Asian markets, Japan’s Nikkei 225 index and Shanghai’s SSE Composite index ended higher. Markets were closed in South Korea and Hong Kong due to holidays.
European markets were trading higher.
US markets ended in positive territory on Friday.
FII Activity and Previous Session
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,440.47 crore on Friday, according to exchange data.
In the previous session on Friday, the Sensex climbed 231.99 points, or 0.31 per cent, to settle at 75,415.35. The Nifty edged higher by 64.60 points, or 0.27 per cent, to end at 23,719.30.
