Stock markets surge in early trade as crude oil drops below $100 per barrel

New Delhi: Benchmark equity indices Sensex and Nifty surged in early trade on Monday supported by a sharp correction in crude oil prices and arally in global markets amid improving sentiment surrounding the US-Iran negotiations.

The 30-share BSE Sensex jumped 908.98 points to 76,317.85 in early trade. The 50-share NSE Nifty surged 262.65 points to 23,977.70.

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From the 30-Sensex firms, Mahindra & Mahindra, HDFC Bank, Bajaj Finance, Bajaj Finserv, Larsen & Toubro, and InterGlobe Aviation were among the biggest winners.

Tata Consultancy Services and Sun Pharma were the laggards.

Brent crude, the global oil benchmark, tanked 5.58 percent to trade at USD 97.76 per barrel.

"We are starting the week on a positive note. Crude has dipped USD 5 to below USD 100 on expectations that US and Iran are close to a deal. The market will wait and watch for clarity and certainty since many similar expectations have been belied since the start of the war. If this expected deal holds and crude drifts down, that can turn out to be turning point for the market," V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.

In Asian markets, Japan's Nikkei 225 index and Shanghai's SSE Composite index were trading higher. Markets were closed in South Korea and Hong Kong due to holidays.

US markets ended in positive territory on Friday.

Crude oil prices have corrected sharply, marking a significant pullback from recent highs above the USD 100-105 zone, Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.

"The decline in oil prices is being viewed as a meaningful positive for India's macroeconomic outlook, as softer energy prices help ease concerns around inflation, import costs and corporate profitability," he added.

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Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,440.47 crore on Friday, according to exchange data.

On Friday, the Sensex climbed 231.99 points, or 0.31 percent, to settle at 75,415.35. The Nifty edged higher by 64.60 points, or 0.27 percent, to end at 23,719.30.

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