Domestic equity markets saw an increase on Monday as crude oil prices dropped below $100 per barrel for the first time in over two weeks. The Sensex surged by 1.15% to reach an intraday high of 76,289, while the Nifty rose by 1.11% to 23,983. Nifty Auto led the gains among sectoral indices, with a rise of over 2%, followed by Nifty PSU Bank and Nifty Private Bank, which saw increases of up to 1%.
Among other sectoral indices, Nifty Oil & Gas, Nifty Realty, Nifty Consumer Durables, Nifty Cement, and Nifty Chemicals traded positively, keeping all sectoral indices in the green. However, Hindalco Industries experienced the most significant drop among Nifty stocks, falling nearly 2% in early trade. Other companies like ONGC, Max Healthcare, NTPC, and Infosys also traded lower, with losses of up to 1%.
Smallcap indices led the gains in the broader market, with Nifty Smallcap 50 and Nifty Smallcap 100 rising by over 1%. Additionally, benchmark-linked broader indices such as Nifty 100, Nifty 200, and Nifty 500 also saw gains of around 1% each. The positive market sentiment was supported by easing crude oil prices, strong March-quarter earnings, and improving currency stability.
US President Donald Trump mentioned progress in negotiations with Tehran for a peace deal that could potentially reopen the Strait of Hormuz, a crucial route for global oil and LNG shipments. Analysts highlighted the positive impact of falling crude prices and strong earnings from digital platform companies on market performance. They also noted that the rupee’s appreciation and market resilience amid global uncertainties reflect growing confidence among Indian investors.
Crude oil prices witnessed a sharp decline, with Brent crude falling by 6.16% to $97.16 a barrel and US West Texas Intermediate (WTI) crude dropping by 6.5% to $90.33 per barrel. Asian equities experienced a broad rally, with Japan’s Nikkei and Taiwan’s benchmark index surging by nearly 3% each, while Hong Kong’s Hang Seng gained about 1%. The positive momentum extended to Wall Street, where the S&P 500 and Nasdaq closed higher by 0.37% and 0.19%, respectively.
