Sensex jumped 544 points, while Nifty gained 391 points as falling crude oil prices and renewed FPI buying lifted market sentiment.
Brent crude slipped nearly 5% after hopes of renewed US-Iran talks, easing inflation and import bill concerns for India.
Investors are now awaiting the RBI's policy decision, with focus on its inflation, liquidity and interest rate outlook.
Markets Add ₹5 Lakh Cr As Falling Crude, FPI Buying Lift Sensex, Nifty
Benchmark indices rallied as easing oil prices, renewed foreign investor buying and hopes of US-Iran talks boosted risk appetite, while investors shifted focus to the RBI policy meeting
Markets Add ₹5 Lakh Crore As Falling Crude, FPI Buying Lift Sensex, Nifty
Summary
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Shares of Indian companies ended sharply higher on Monday, with the Sensex rising more than 544 points and the Nifty ending near the 24,800 mark as lower crude oil prices, renewed foreign portfolio investor (FPI) inflows and easing geopolitical concerns lifted market sentiment.
The Sensex gained over 544 points to close at 78,639, while the Nifty advanced around 391 points to settle at 24,774. The rally added nearly ₹5 lakh crore to the market capitalisation of BSE-listed companies, taking the total valuation to around ₹491 lakh crore.
IndiGo, Infosys and TCS surged around 4% each to lead gains on the Sensex. Bajaj Finserv, Eternal, Axis Bank, ITC and Larsen & Toubro gained 2-3%. Sun Pharma was the top laggard, falling nearly 2% amid profit booking.
Falling Crude, FPI Buying Boosts Sentiment
Brent crude, the global benchmark, declined nearly 5% to $83.56 a barrel after US President Donald Trump said negotiations with Iran were expected to resume, easing fears of prolonged supply disruptions.
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Lower crude prices are positive for India, the world's third-largest oil importer, as they help ease inflationary pressures, reduce the import bill and improve corporate profitability.
Foreign investors also returned as buyers in July, purchasing Indian equities worth ₹20,199 crore. Of this, ₹6,731 crore came through exchanges, while ₹13,467 crore was invested through the primary market and other routes.
Debt inflows also remained strong, with ₹29,211 crore coming through the General Limit category, reflecting improving overseas confidence in Indian assets.
Global Cues And RBI In Focus
Global markets also supported sentiment. Asian equities traded higher, while US markets ended Friday's session in positive territory. Nasdaq and other Wall Street futures also pointed to a firm opening.
Investors will now shift their focus to the Reserve Bank of India's monetary policy decision later this week for guidance on inflation, liquidity and the interest-rate outlook.
Vinod Nair, Head of Research at Geojit Investments, said the fall in crude oil prices following expectations of renewed US-Iran dialogue eased concerns around inflation and corporate earnings, supporting equities.
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He added that improving FPI inflows and a strengthening rupee further lifted sentiment, although elevated US bond yields remain a key risk for sustained foreign investment into emerging markets. Nair also said the ongoing Q1FY27 earnings season has been better than expected, with small-cap companies outperforming their large- and mid-cap peers, while investors will closely watch the RBI's commentary on inflation and liquidity despite expectations that rates will remain unchanged.