Sensex and Nifty surge over 1% as crude oil prices fall below $100

Indian equity markets opened sharply higher on Monday after global crude oil prices fell below the $100-a-barrel mark for the first time in more than two weeks, boosting investor sentiment and lifting benchmark indices by over 1 per cent in early trade.

The BSE Sensex climbed 874 points, or 1.15 per cent, to an intraday high of 76,289, while the NSE Nifty rose 264 points, or 1.11 per cent, to 23,983 during morning trading.

The rally was driven by hopes of easing geopolitical tensions following reports of progress towards a possible agreement between the United States and Iran, which could help restore stability to oil supply routes in the region.

Among sectoral indices, Nifty Auto led gains with a rise of more than 2 per cent. Banking stocks also advanced, with Nifty PSU Bank and Nifty Private Bank indices gaining up to 1 per cent. Other sectors including oil and gas, realty, consumer durables, cement and chemicals also traded in positive territory.

In contrast, Hindalco Industries emerged as the top laggard among Nifty stocks, slipping nearly 2 per cent in early trade. ONGC, Max Healthcare, NTPC and Infosys also traded lower.

Broader markets mirrored the positive momentum, with small-cap stocks outperforming benchmark indices. Nifty Smallcap 50 and Nifty Smallcap 100 each gained more than 1 per cent, while the Nifty 100, Nifty 200 and Nifty 500 indices also posted solid gains.

Investor sentiment improved after US President Donald Trump said Washington and Tehran had largely negotiated a memorandum of understanding for a potential peace agreement.

Market participants believe such a deal could pave the way for the reopening of the Strait of Hormuz, a critical shipping route for global crude oil and liquefied natural gas supplies.

Analysts said the fall in oil prices, combined with stronger-than-expected March-quarter corporate earnings and improving rupee stability, had created a favourable environment for equities.

Market experts also pointed to the strong performance of digital platform companies during the recent earnings season, noting that investors were rewarding firms showing consistent growth.

The recent recovery in the rupee has further strengthened sentiment, with analysts suggesting that currency stability could encourage renewed foreign portfolio investment into Indian markets.

Global oil prices declined sharply, with Brent crude falling 6.16 per cent to $97.16 a barrel, while US West Texas Intermediate crude dropped 6.5 per cent to $90.33 per barrel.

Asian markets also rallied strongly. Japan’s Nikkei and Taiwan’s benchmark index surged nearly 3 per cent each, while Hong Kong’s Hang Seng index gained around 1 per cent.

The positive mood followed a firm session on Wall Street, where the S&P 500 and Nasdaq closed higher by 0.37 per cent and 0.19 per cent respectively.

With IANS Inputs