Sensex surges 776 points as crude oil prices tumble
MUMBAI, July 27: Indian equity markets ended sharply higher on Monday, snapping a five-session losing streak, as a steep decline in global crude oil prices and easing tensions in West Asia boosted investor sentiment.
The benchmark BSE Sensex climbed 776.01 points, or 1.02 per cent, to close at 76,835.78. During intra-day trading, the index rose as much as 841.74 points to touch 76,901.51.
The NSE Nifty50 also rebounded strongly, gaining 228.50 points, or 0.96 per cent, to settle at 23,995.95, ending its five-day decline.
Among the top gainers on the Sensex were Eternal, which surged 5.70 per cent, followed by InterGlobe Aviation, Infosys, Bajaj Finance, Asian Paints and Mahindra & Mahindra. HDFC Bank, Power Grid and Axis Bank were among the major laggards.
Market sentiment improved after Brent crude, the international oil benchmark, plunged 9.40 per cent to USD 87.64 per barrel, reducing concerns over higher import costs and inflationary pressures for India.
Vinod Nair, Head of Research at Geojit Investments Limited, said the pause in hostilities in West Asia had eased fears of rising energy prices, leading to a relief rally in domestic equities. He added that the sharp fall in crude oil prices, along with lower long-term bond yields, had strengthened hopes of a more stable market environment.
Despite Monday’s rally, Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹3,892.77 crore on Friday, according to exchange data.
Elsewhere in Asia, major stock indices, including South Korea’s KOSPI, Japan’s Nikkei 225, China’s Shanghai Composite and Hong Kong’s Hang Seng, ended the day with gains. European markets were also trading in positive territory, while US markets had closed mostly higher in the previous session.
The recovery followed Friday’s losses, when the Sensex had fallen 331.62 points to close at 76,059.77 and the Nifty had declined 102.15 points to end at 23,767.45.
