Sensex, Nifty Gain as Global Markets Rise, Crude Eases
Indian equity benchmarks Sensex and Nifty extended gains on Monday, tracking positive cues from global markets and a sharp decline in crude oil prices. The BSE Sensex rose over 300 points to reclaim the 67,000 mark, while the Nifty50 index moved above 20,000 levels, supported by buying interest in banking, auto, and IT stocks. Analysts say the fall in crude oil prices below $90 per barrel has eased concerns over inflation and current account deficit, providing a fillip to domestic equities. The rupee also strengthened against the US dollar, adding to the positive sentiment.
Market breadth remained positive, with more than 1,800 stocks advancing on the BSE, while 1,200 declined. The Nifty Bank index gained over 1 per cent, led by HDFC Bank, ICICI Bank, and Axis Bank. Auto stocks such as Maruti Suzuki, Tata Motors, and Mahindra & Mahindra were among the top gainers, rising up to 2 per cent, as softer crude prices reduce input costs and boost demand prospects. IT majors Infosys, TCS, and Wipro also traded higher, mirroring the strength in global technology shares.
Analysts say the decline in crude oil prices and a stable global environment could support Indian markets in the near term, though volatility may persist ahead of key economic data releases.
Globally, Asian markets ended higher, with Japan's Nikkei 225 up 1.2 per cent, Hong Kong's Hang Seng gaining 1.5 per cent, and China's Shanghai Composite rising 0.8 per cent. European markets opened on a positive note, with FTSE 100, DAX, and CAC 40 up between 0.5 and 1 per cent. US futures pointed to a higher opening on Wall Street, as investors awaited the Federal Reserve's policy meeting minutes and inflation data later this week. The dollar index weakened, while gold prices edged up.
On the domestic front, foreign institutional investors (FIIs) were net buyers, purchasing equities worth over ₹1,500 crore in the previous session, according to provisional data. Domestic institutional investors (DIIs) also supported the market with net buying of more than ₹800 crore. Analysts say sustained FII inflows, coupled with strong domestic macroeconomic fundamentals, could drive markets higher in the coming weeks.
| Index | Current Level | Change (Points) | Change (%) |
|---|---|---|---|
| Sensex | 67,250 | +320 | +0.48% |
| Nifty 50 | 20,050 | +95 | +0.47% |
| Nifty Bank | 45,300 | +450 | +1.00% |
| BSE Midcap | 29,800 | +180 | +0.61% |
| BSE Smallcap | 34,200 | +210 | +0.62% |
Crude oil prices eased after reports suggested that OPEC+ may consider increasing production to stabilise global markets. Brent crude futures fell below $89 per barrel, while US West Texas Intermediate (WTI) crude traded near $85 per barrel. The decline in crude prices is positive for India, which imports over 80 per cent of its oil requirements, as it helps control inflation and reduces the fiscal burden.
Analysts say that the Indian market is likely to remain range-bound in the near term, with stock-specific action dominating. Investors are advised to focus on quality stocks with strong earnings visibility and avoid leveraged positions. The upcoming quarterly earnings season and global central bank meetings will be key triggers for the market.
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