Mediaeye News
Mumbai: Indian benchmark equity indices ended a five-session losing streak on Monday, supported by a sharp fall in crude oil prices after the United States and Iran paused military strikes, easing concerns over prolonged geopolitical tensions.
The Sensex surged 776.29 points, or 1.02 per cent, to close at 76,835.78, while the Nifty climbed 229.40 points, or 0.96 per cent, to settle at 23,995.95, nearly reclaiming the 24,000 mark.
Commenting on Nifty technical outlook, experts said that the index has recovered as the fall in crude prices lifted equity market sentiment.
“If the Nifty moves and sustains above 24,000, we may witness a continuation of the uptrend towards 24,250–24,300. However, failure to sustain above 24,000 might trigger a correction towards 23,800,” a market expert mentioned.
Investor sentiment improved as lower oil prices raised hopes of easing inflationary pressures and reduced concerns over higher import costs for India, one of the world’s largest crude oil importers.
Among the Nifty constituents, Eternal, InterGlobe Aviation and Infosys emerged as the top gainers, leading the market rebound.
The rally was broad-based, with the wider market outperforming the benchmarks. The Nifty MidCap index advanced 1.11 per cent, while the Nifty SmallCap index gained 1.31 per cent.
Sectoral indices also ended mostly in positive territory. The Nifty IT, Nifty Media and Nifty Realty were the top-performing sectors during the session.
Meanwhile, the Nifty Realty, Nifty Pharma and Nifty Metal indices snapped their three-day losing streak, adding to the overall market momentum.
The Nifty Oil & Gas index, however, underperformed its sectoral peers despite the broader market rally.
Market experts said that the recovery came after five consecutive sessions of losses, with investors taking comfort from easing geopolitical tensions and the resulting decline in global crude oil prices, which helped lift risk appetite across domestic equities.
“Improving global sentiment, a stronger rupee, gains in information technology stocks and encouraging corporate earnings further underpinned domestic markets,” a market expert mentioned.
Meanwhile, the Indian rupee has surged to become Asia’s top performer, supported by timely central bank intervention and focused policy measures that have effectively restored foreign investor flows.
“Global market dynamics have amplified these gains, with a plunge in crude oil prices, a retreat in the dollar index, and a renewed risk-on environment,” an analyst stated.
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–IANS
