Sensex, Nifty surge in early trade as oil rout, FII buying lift sentiment

New Delhi: Stock market benchmarks Sensex and Nifty opened sharply higher on Monday, buoyed by a steep fall in crude oil prices as geopolitical tensions eased and foreign fund inflows returned.

The 30-share BSE Sensex rose 470.06 points to 78,564.70 in early trade, while the 50-share NSE Nifty advanced 150 points to 24,532.95.

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Among Sensex constituents, ITC, Bajaj Finserv, InterGlobe Aviation, Bajaj Finance, Tata Consultancy Services and Infosys led the gains, while Sun Pharma and Maruti lagged.

Global oil benchmark Brent crude fell 4.97 percent to USD 83.56 a barrel, easing cost pressures and improving risk appetite. Foreign Institutional Investors (FIIs) had turned net buyers on Friday, purchasing equities worth Rs 277.48 crore, exchange data showed.

“Investor sentiment improved after US President Donald Trump indicated that negotiations with Iran are expected to resume on Monday, reviving hopes of a diplomatic resolution following recent military tensions,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm. “Global risk sentiment has also been supported by a sharp correction in crude oil prices as easing geopolitical concerns prompted investors to unwind the recent risk premium,” he added.

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In Asia, South Korea’s KOSPI, Japan’s Nikkei 225 and Shanghai’s SSE Composite were lower, while Hong Kong’s Hang Seng traded higher. US markets had closed in positive territory on Friday.

“The decline in Brent crude to below USD 84, good progress in monsoon in July and FIIs turning buyers are positive triggers for the market,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

On Friday, the Sensex gained 166.49 points (0.21 percent) to close at 78,094.64, and the Nifty rose 66.45 points (0.27 percent) to finish at 24,383.60.

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