Domestic equity benchmark indices started the week on a positive note, with Sensex opening 0.72% higher at 76,608.98 and Nifty gaining 0.68% to reach 23,928.40, supported by a significant drop in crude oil prices. All sectoral indices traded in the green during the opening session, with Nifty MidSmall Financial Services index leading the gains by rising 1.29%.
Market experts noted that the recent sharp decline in Brent crude prices, falling from $102 to around $93, has had a positive impact on market sentiment. They mentioned that if the West Asia conflict de-escalates and crude prices continue to decrease, it could sustain a mild rally in the market. Additionally, the correction in global chip stocks and concerns related to AI trade might attract foreign portfolio investor interest in Indian equities.
The international oil benchmark Brent crude saw a significant drop of over 7%, trading around $91 a barrel, while US West Texas Intermediate (WTI) crude also fell over 7%, slipping below $85 a barrel. Meanwhile, Asian markets showed a mixed trend, with Japan’s Nikkei up by 0.16%, Hong Kong’s Hang Seng gaining around 1%, and South Korea’s KOSPI falling nearly 1% in early trade.
