New Delhi: Equity benchmark indices Sensex and Nifty surged in early trade on Monday, led by a sharp rally in index heavyweight Reliance Industries following its strong quarterly earnings, while easing crude oil prices and positive global cues boosted investor sentiment.
The 30-share BSE Sensex jumped 764.72 points to 75,216.80 in early trade, while the broader NSE Nifty climbed 201.40 points to 23,255.90.
The rally was supported by foreign institutional investor (FII) inflows, gains across major Asian markets and a decline in global crude oil prices, which provided some relief to investors concerned about inflation and India’s import costs.
Reliance Industries emerged as the biggest driver of the market’s gains, with its shares surging over 6 percent after the conglomerate reported a record quarterly profit of Rs 29,550 crore for the July-September period, marking a 33.8 percent increase from a year earlier.
The strong earnings were primarily driven by improved profitability in its oil-to-chemicals business, which benefited from higher global fuel margins. Growth in its telecom operations also supported the performance, offsetting relatively subdued results in the retail segment.
Among other Sensex constituents, NTPC, Tata Steel, Power Grid, Maruti Suzuki and State Bank of India were among the major gainers.
However, Sun Pharmaceutical Industries, Tech Mahindra, Titan and Infosys traded lower, limiting some of the benchmark indices’ gains.
Global oil benchmark Brent crude declined around 3 percent to USD 110 per barrel, retreating from last week’s high of USD 118. The easing of oil prices offered some relief to Indian equities, given the country’s heavy dependence on imported crude.
A decline in the US 10-year Treasury yield to 4.93 percent also supported market sentiment.
“The slight cooling of Brent crude prices from last week’s high of USD 118 to USD 110 now is a relief. Equally important is the decline in the US 10-year bond yield to 4.93 percent. But, perhaps, more important than these external tailwinds, is the sharp weakening of the AI trade which pulled down the Nasdaq by 2.8 percent last Friday. Weakening trend in AI trade is beneficial for India which is widely regarded as a counter AI play,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Foreign institutional investors purchased equities worth Rs 3,598.54 crore on Friday, according to exchange data, providing additional support to domestic markets.
Positive trading across Asian equities also strengthened sentiment. South Korea’s Kospi, Japan’s Nikkei 225, China’s Shanghai Composite and Hong Kong’s Hang Seng indices were trading higher.
The gains in Asian markets came despite a sharp decline in US equities on Friday, when technology stocks faced selling pressure amid concerns surrounding artificial intelligence-related valuations.
Monday’s rally followed a positive close in the previous trading session.
On Friday, the BSE Sensex gained 308.49 points, or 0.42 percent, to settle at 74,459.53, while the NSE Nifty advanced 116.35 points, or 0.51 percent, to close at 23,053.10.
Market participants are expected to closely monitor crude oil price movements, foreign portfolio flows and upcoming corporate earnings for further direction.
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