Mumbai–Indian benchmark stock indexes ended a five-session losing streak Monday as a sharp drop in crude oil prices and easing geopolitical tensions boosted investor sentiment.
The Sensex climbed 776.29 points, or 1.02%, to close at 76,835.78. The Nifty gained 229.40 points, or 0.96%, to finish at 23,995.95, just below the 24,000 level.
Markets rallied after the United States and Iran paused military strikes, reducing concerns that the conflict could escalate and disrupt global oil supplies.
Lower crude prices supported Indian equities by easing fears of inflation and higher import costs. India is one of the world’s largest crude oil importers.
“If the Nifty moves and sustains above 24,000, we may witness a continuation of the uptrend towards 24,250–24,300. However, failure to sustain above 24,000 might trigger a correction towards 23,800,” a market expert said.
Eternal, InterGlobe Aviation and Infosys were among the top gainers on the Nifty.
The rally extended to the broader market, with the Nifty MidCap index rising 1.11% and the Nifty SmallCap index advancing 1.31%.
Most sectoral indexes also closed higher. Information technology, media and real estate stocks were among the strongest performers.
The Nifty Realty, Pharma and Metal indexes ended three consecutive sessions of losses, while the Nifty Oil & Gas index underperformed the broader market.
Analysts said a stronger rupee, gains in technology stocks and encouraging corporate earnings also supported the rebound.
The rupee strengthened as falling crude prices, a weaker U.S. dollar and improved investor risk appetite helped support foreign capital flows.
“Global market dynamics have amplified these gains, with plunge in crude oil prices, a retreat in the dollar index, and a renewed risk on environments,” an analyst said. (Source: IANS)
