MUMBAI: Indian equity markets ended sharply higher on Monday, extending gains as easing tensions in West Asia and a decline in crude oil prices boosted investor sentiment.
The BSE Sensex rose 736.38 points, or 0.97%, to close at 76,264.33, while the NSE Nifty 50 gained 231 points, or 0.98%, to settle at 23,853.90. The rally was broad-based, with strong buying interest in automobile, real estate, industrial and consumption-related stocks.
According to media reports, an interim agreement between the United States and Iran to ease hostilities helped calm concerns about a prolonged conflict, leading to a sharp drop in global crude oil prices.
Brent crude fell 5.14% to $82.84 per barrel, while US West Texas Intermediate crude declined 5.51% to $80.20 per barrel. Lower oil prices are viewed as a positive development for India, which imports more than 85% of its crude oil requirements.
The Indian rupee strengthened for a second straight session, ending 0.4% higher at 94.71 against the US dollar, compared with its previous close of 95.11. During the session, it touched 94.4625, its strongest level in five weeks.
Market analysts said easing crude prices have reduced inflation concerns, improved the outlook for interest rates and strengthened earnings visibility, encouraging investors to move into growth-oriented sectors.
Among sectoral indices, Nifty Realty led gains with a rise of 3.96%, followed by Nifty Auto, up 2.60%. Nifty Metal gained 1.78%, while Nifty Financial Services and Nifty IT advanced 1.39% and 0.98%, respectively.
Among Sensex constituents, Trent, IndiGo, Bajaj Finserv, UltraTech Cement, Maruti Suzuki, Larsen & Toubro and Titan were among the top gainers. On the other hand, NTPC, ICICI Bank, Asian Paints, Hindustan Unilever, Sun Pharma and Tech Mahindra ended lower.
Broader markets also participated in the rally. The Nifty Midcap 50 climbed 1.37%, while the Nifty Midcap 100 and Nifty 500 each gained 1.29%. The Nifty Smallcap 100 rose 1.11%.
Market volatility eased, with the India VIX declining 2.48% to 14.35, indicating reduced nervousness among investors.
Analysts said investors will continue to monitor developments in West Asia, movements in crude oil prices, global interest rate expectations and upcoming corporate earnings for further market direction.
Disclaimer: This content is based on media reports and market data available at the time of reporting and is for informational purposes only. Investors are advised to consult a qualified financial expert before making any investment decisions. VisionMP is not responsible for any loss arising from the use of this information.
