Sensex Jumps 582 Points, Nifty Reclaims 23,900 As Crude Slips Below $93

Indian benchmark indices opened sharply higher on Monday, snapping a five-session losing streak as a steep fall in crude oil prices following a pause in hostilities between the United States and Iran lifted investor sentiment.

At the opening, the Sensex jumped 581.95 points, or 0.77%, to 76,641.72, while the Nifty 50 gained 174.70 points, or 0.74%, to 23,942.15, reclaiming the 23,900 mark.

Market breadth was positive, with 75 shares advancing, 31 declining and 14 remaining unchanged.

InterGlobe Aviation, Tata Consumer Products, Bajaj Finance, Asian Paints and Infosys were among the major Nifty gainers, while ONGC, Wipro and Apollo Hospitals traded in the red.

Crude Retreat Fuels Market Rebound

The biggest trigger for the rebound was the sharp correction in crude oil prices after the US and Iran paused hostilities.

Brent crude slipped below $93 a barrel after briefly crossing the $100 mark last week, easing concerns over inflation, India's import bill and pressure on corporate profitability.

The Indian rupee also strengthened 0.4% to open at 96.1475 against the US dollar, adding to the positive sentiment.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the fall in Brent crude from $102 four days ago to around $93 was positive for market sentiment. He added that if the de-escalation in West Asia holds and crude continues to decline, it could support a mild rally in domestic equities.

Vijayakumar, however, said FII flows have remained inconsistent this month, alternating between buying and selling.

IT Stocks Lead Gains

Technology stocks emerged as one of the biggest beneficiaries of Monday's rebound after facing heavy selling in the previous week.

The Nifty IT index gained 1.54% in early trade. Among heavyweight technology stocks, Infosys jumped 2.39%, Tech Mahindra gained 1.39%, TCS advanced 1.27% and HCLTech rose 0.98%.

Vijayakumar said the correction in global chip stocks and concerns surrounding the AI trade could potentially revive foreign portfolio investor interest in Indian equities.

He noted that India's diversified stock market offers investors exposure across a wider range of sectors compared with some emerging markets dominated by a handful of heavyweight stocks.

Broad-Based Buying Returns

Buying was not restricted to frontline stocks, with the broader market also participating in the recovery.

The Nifty Midcap 50 rose 1.14%, while the Nifty Midcap 100 gained 1% and the Nifty Smallcap 100 advanced 0.89%.

Sectorally, Nifty Media climbed 1.58%, followed by Nifty IT at 1.54%. The MidSmall Healthcare index gained 1.47%, MidSmall Financial Services rose 1.24%, FMCG advanced 1.05%, Realty added 1.02% and Healthcare gained 0.88%.

Meanwhile, India VIX fell nearly 4%, indicating an easing in near-term market volatility.

Vijayakumar said crude oil prices and the progress of the monsoon are likely to remain two key factors influencing foreign investor flows and the direction of the domestic market going forward.