Indian benchmark equity indices broke a five-session losing streak on Monday, driven by a significant drop in crude oil prices following the US-Iran decision to halt military actions. The Sensex surged by 776.29 points to close at 76,835.78, while the Nifty rose by 229.40 points to settle at 23,995.95, nearing the 24,000 mark.
Experts noted that the Nifty’s recovery was influenced by the decline in crude prices, boosting market sentiment. They suggested that if the Nifty maintains levels above 24,000, an uptrend towards 24,250–24,300 could be expected. However, a failure to sustain above 24,000 might lead to a correction towards 23,800.
Investor confidence improved as lower oil prices raised hopes of reduced inflationary pressures and lower import costs for India, a major crude oil importer. Among the top gainers in the Nifty were Eternal, InterGlobe Aviation, and Infosys, driving the market’s upward trend.
The market rally was broad-based, with the Nifty MidCap index rising by 1.11% and the Nifty SmallCap index by 1.31%. Sectoral indices also mostly closed in positive territory, with Nifty IT, Nifty Media, and Nifty Realty emerging as the top-performing sectors during the session.
Despite the overall market momentum, the Nifty Oil & Gas index lagged behind its sectoral counterparts. Market analysts attributed the recovery to easing geopolitical tensions and the subsequent drop in global crude oil prices, boosting risk appetite in domestic equities.
Improving global sentiment, a stronger rupee, gains in information technology stocks, and positive corporate earnings were cited as factors supporting the domestic market. The Indian rupee’s rise as Asia’s top performer was attributed to timely central bank interventions and focused policy measures that restored foreign investor flows.
