Indian markets gain momentum as a sharp drop in Brent crude prices improves sentiment across benchmarks.
Mumbai: Indian equity benchmarks opened higher on Monday, buoyed by a sharp drop in crude oil prices and improved investor sentiment.
The Sensex began trading 549.21 points, or 0.72 per cent, higher at 76,608.98, while the Nifty climbed 160.95 points, or 0.68 per cent, to open at 23,928.40.
All sectoral indices were trading in positive territory during the early session.
The Nifty MidSmall Financial Services index led the gains, rising 1.29 per cent, followed by the Nifty IT index, which advanced 1.25 per cent. The Nifty Media index gained 1.06 per cent, while the Nifty FMCG index rose 1 per cent.
Among other sectors, the Nifty Auto index rose 0.83 per cent, while Nifty Chemicals gained 0.80 per cent. Nifty Private Bank also advanced 0.80 per cent, followed by Nifty Realty, which climbed 0.75 per cent. Nifty Metal increased 0.73 per cent, and Nifty PSU Bank traded 0.72 per cent higher.
Market experts said the sharp fall in Brent crude prices has provided a major boost to investor sentiment. Brent crude, which was trading at around $102 four days earlier, declined to nearly $93 on Monday morning, offering support to equity markets.
Market experts said the decline in Brent crude prices from $102 four days ago to around $93 on Monday morning has provided a positive boost to market sentiment. They added that if the easing of tensions in the West Asia conflict continues and crude prices move lower, it could support a moderate rally in equities.
Experts also noted that the recent correction in global semiconductor stocks, along with concerns over the artificial intelligence (AI) trade, could encourage foreign portfolio investors (FPIs) to increase their exposure to Indian equities.
Brent crude, the global oil benchmark, dropped more than 7 per cent, falling by around $7 to trade near $91 a barrel. US West Texas Intermediate (WTI) crude also declined over 7 per cent, losing about $6.4 to slip below $85 a barrel.
Asian markets showed mixed performance in early trade. Japan’s Nikkei edged up 0.16 per cent, Hong Kong’s Hang Seng gained around 1 per cent, while South Korea’s KOSPI fell nearly 1 per cent.
