Lower crude prices and FII inflows push Sensex, Nifty higher in early trade

Indian equity benchmarks opened sharply higher on Monday, with the Sensex rising more than 800 points and the Nifty reclaiming the 24,500 mark, as falling global crude oil prices and renewed foreign institutional buying boosted investor sentiment.

The BSE Sensex climbed around 800 points, or just over 1 per cent, to touch an intraday high of 78,895.10 during early trade. The NSE Nifty advanced nearly 193 points, or 0.8 per cent, to 24,576.45.

Buying was broad-based, with banking, FMCG, metal and cement stocks leading the rally. The Nifty FMCG, Metal, Chemicals, Cement, PSU Bank and Private Bank indices all traded higher by up to 1 per cent.

In contrast, media, pharmaceutical and healthcare shares remained under pressure. The Nifty Media, Pharma and Healthcare indices slipped as much as 1.6 per cent amid selective profit-booking.

The broader market also participated in the rally, with the Nifty Smallcap 100 and Nifty Microcap 500 indices gaining around 1 per cent.

Market participants attributed the positive momentum to a combination of easing crude oil prices, favourable monsoon conditions and the return of foreign institutional investors as net buyers. Analysts said these factors have strengthened expectations of a potential breakout above the 24,500 level on the Nifty.

They also pointed to resilient domestic economic indicators, including robust credit growth, healthy automobile sales and stronger-than-expected first-quarter corporate earnings, which could support higher earnings growth during FY27 than previously anticipated.

Analysts noted that strong inflows through FCNR(B), external commercial borrowings (ECB) and overseas foreign currency borrowings (OFCB) have helped stabilise the rupee, encouraging renewed foreign investment into Indian equities.

From a technical perspective, analysts said the Nifty continues to trade within a well-defined range. Strong put open interest around the 24,400 strike is expected to provide immediate support, while significant call writing near the 24,600 level could restrict gains in the near term.

They added that the index is likely to retain a mildly bullish bias as long as it remains above 24,350, while a decisive break below that level could weaken market sentiment.

Global cues also supported domestic markets after crude oil prices fell sharply. Brent crude declined by more than 5 per cent to around $83.31 a barrel, while US West Texas Intermediate (WTI) crude dropped nearly 7 per cent to about $78.78 a barrel, easing concerns over inflation and input costs.

With IANS inputs