Benchmark indices opened higher on Monday, extending last week’s gains as easing concerns over the West Asia conflict and lower crude oil prices lifted investor sentiment.
The S&P BSE gained 404.20 points, or 0.53%, to 77,207.10 in early trade, while the NSE Nifty50 rose 117.25 points, or 0.49%, to 24,130.35.
The rally came as progress in US-Iran peace talks reduced fears of a fresh escalation in the region, helping Brent crude remain below the crucial $80-per-barrel mark. Brent crude futures were down 1.5% at $79.36 per barrel, while WTI crude traded at $75.63.
The decline in prices continues to be a major positive for India, which imports more than 80% of its oil requirements. Lower oil prices ease inflation concerns, reduce pressure on the current account deficit and support the rupee.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the market is taking comfort from the fact that Brent crude remains below $80 despite mixed headlines emerging from the West Asia negotiations.
“Despite the confusing news coming from the West Asia talks, Brent crude is trading below $80. This market signal indicates that further flare-up in the conflict is unlikely,” he said.
Vijayakumar added that the appreciation in the rupee from 96.96 against the US dollar in May to around 94.32 now is another positive factor supporting market resilience.
Among sectoral indices, Nifty Oil & Gas led the gains with a rise of 1.23%, followed by Nifty Midsmall IT & Telecom, which advanced 1.12%, and Nifty IT, which gained 1.05%.
Financial stocks also remained firm. Nifty Financial Services rose 0.52%, while Nifty Financial Services Ex-Bank gained 0.54%.
On the Sensex, Reliance Industries emerged as the top gainer, climbing 2.45%. Other major gainers included Tech Mahindra (+1.22%), Infosys (+1.11%), HDFC Bank (+1.01%), Bajaj Finance (+0.93%) and HCLTech (+0.90%).
The gains in IT stocks come after the sector witnessed sharp selling on Friday following Accenture’s cautious demand outlook.
The broader market also traded in positive territory, indicating healthy risk appetite among investors.
The Nifty Smallcap 100 rose 0.35%, while the Nifty Midcap 100 gained 0.26%. Nifty Midcap 50 advanced 0.28%.
Market volatility remained contained, with India VIX rising only 0.59% to 13.05.
According to Vijayakumar, Bank Nifty remains fundamentally strong and deserves calibrated accumulation.
He also noted that while foreign portfolio investor inflows received a boost from the recent FTSE rejig, investors should not read too much into Friday’s buying figures as they were largely event-driven rather than indicative of a new trend.
Still, lower crude prices, a stronger rupee and expectations of fresh capital inflows could help improve foreign investor sentiment in the coming weeks.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)