Sensex and Nifty opened sharply higher as Brent crude fell below $84 a barrel, boosting sentiment ahead of the RBI policy meeting.
Lower oil prices, a stronger rupee and continued FII buying lifted markets, with ITC, IndiGo and Bajaj Finance among the top gainers.
Investors are now focused on the RBI's policy decision, Q1 earnings and global developments for further market direction.
Sensex Jumps 700 Points, Nifty Above 24,500 As Crude Slumps 5%
Benchmark indices rallied in early trade as Brent crude fell below $84 a barrel, the rupee strengthened and investors looked ahead to the RBI policy meeting
Sensex Jumps 700 Points, Nifty Above 24,500 As Crude Slumps 5%
Summary
Advertisement
Indian benchmark indices opened sharply higher on Monday, supported by a steep decline in crude oil prices, a stronger rupee and continued foreign investor buying, while investors also looked ahead to the Reserve Bank of India's monetary policy decision later this week.
The Sensex opened 788.70 points higher at 78,883.34 against its previous close of 78,094.64. By 9:16 am, the index was trading 543.52 points, or 0.70%, higher at 78,638.16.
The Nifty 50 gained 168.45 points, or 0.69%, to 24,552.05 after opening at 24,572.70, compared with its previous close of 24,383.60.
Market breadth remained positive, with 14 of the 16 major sectoral indices trading in the green. The Nifty Smallcap and Nifty Midcap indices advanced 0.7% and 0.4%, respectively.
Among the top Nifty gainers were InterGlobe Aviation (3.03%), ITC (2.74%), Bajaj Finance (2.70%), Tata Motors DVR (2.24%) and Bajaj Finserv (1.72%). On the downside, Sun Pharma, Cipla, Apollo Hospitals and Bajaj Auto traded lower.
Advertisement
Crude Oil Slumps, Rupee Strengthens
Investor sentiment received a major boost after Brent crude fell around 5% to $83.49 a barrel following comments from US President Donald Trump that talks with Iran would take place on Monday, easing fears of an immediate escalation in the West Asia conflict.
US West Texas Intermediate (WTI) crude also declined 5.85% to $79.70 a barrel, while crude futures on the MCX fell more than 6% in early trade.
Lower crude prices are positive for India as they help ease inflationary pressures, reduce the import bill and support corporate profitability.
The Indian rupee also strengthened by 30 paise to 95.13 against the US dollar in early trade, further supporting market sentiment.
RBI Policy, Earnings In Focus
Investors are expected to closely track the Reserve Bank of India's Monetary Policy Committee (MPC) meeting, the ongoing Q1 FY27 earnings season, and global developments this week.
Advertisement
Market participants expect the RBI to keep policy rates unchanged at its August 3-5 meeting, with greater focus likely on the central bank's commentary regarding inflation and growth.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the market appears poised for a breakout above the 24,500 level on the Nifty, supported by lower crude prices, improving monsoon progress and renewed FII buying.
He added that resilient economic growth, better-than-expected credit growth, healthy auto sales, stronger-than-expected June-quarter earnings and improving capital inflows through FCNR(B), ECB and OFCB routes have helped stabilise the rupee and encouraged foreign investors to return to Indian equities.