Brent Crude Plunge Sends Indian Stocks Soaring Amid FPI Inflows

The Indian stock market benchmark indices Sensex and Nifty surged on Monday, driven by a sharp decline in Brent crude prices, easing geopolitical tensions, and sustained foreign fund inflows.

Brent crude fell 4.97% to USD 83.56 a barrel, which is seen as positive for India, a major importer of crude oil. Foreign Portfolio Investors (FPIs) turned net buyers in July, purchasing equities worth Rs 20,199 crore, with FII inflows also witnessing a sharp rise.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that the stability of the rupee and fair valuations of India's large-cap stocks are factors facilitating renewed FPI inflows into India. The market is also being supported by strong Q1 results from companies such as ITC, Divi's Laboratories, and Urban Company.

Easing geopolitical concerns after US President Donald Trump indicated negotiations with Iran would resume on Monday has improved investor sentiment. Rupee rose 31 paise to 95.12 against the US dollar due to a sharp decline in global crude oil prices, a weaker greenback, and support from the Reserve Bank of India.