Indian stock markets witnessed a strong rebound in early trade, with the Sensex and Nifty surging, as crude oil prices dropped sharply amid de-escalating tensions in the West Asia, offering a significant tailwind for the Indian economy.
Sensex and Nifty50 Performance: Key Market Highlights Today
- Indian stock markets, including Sensex and Nifty, rebounded significantly in early trade.
- The rebound was primarily driven by a sharp 4 per cent decline in Brent crude oil prices to $92.84 per barrel.
- Easing geopolitical tensions in the West Asia, with the US and Iran pausing military action, contributed to improved market sentiment.
- Lower crude oil prices are expected to positively impact India by reducing inflation expectations, improving the current account outlook, and strengthening the rupee.
- Despite the positive rebound, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,892.77 crore on the preceding Friday.
Market benchmark indices Sensex and Nifty rebounded in early trade on Monday following a sharp decline in crude oil prices amid easing tensions in the West Asia.
The 30-share BSE Sensex jumped 566 points to 76,608.66 in early trade. The 50-share NSE Nifty surged 153.60 points to 23,923.30.
Winners and Losers on Dalal Street
From the Sensex pack, InterGlobe Aviation, Infosys, Eternal, Asian Paints, Bajaj Finance and Bajaj Finance were among the major gainers.
Bharti Airtel and ICICI Bank were the laggards.
Crude Oil Prices and Global Markets
Brent crude, the global oil benchmark, tanked 4 per cent lower at $92.84 per barrel.
In Asian markets, South Korea's KOSPI traded lower, while Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were also trading higher.
US markets ended mostly higher.
What Experts Say
"Market sentiment has improved meaningfully over the weekend after the US and Iran paused military action, easing fears of an immediate supply disruption.
"Brent crude has corrected sharply, offering a significant tailwind for India through lower inflation expectations, an improved current account outlook and reduced pressure on the rupee," Rajesh Palviya, Head of Research, Axis Direct, said.
"The sharp dip in Brent crude price from $102 four days ago to around $93 this morning is a positive sentiment for the market.
"If the deescalation of the West Asia conflict holds and crude price drifts lower, that can sustain a mild rally in the market," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,892.77 crore on Friday, according to exchange data.
