Crude Oil Crash Sparks Sensex, Nifty Rally as RBI Policy Decision Looms

India's stock market benchmarks Sensex and Nifty saw significant gains on Wednesday following a sharp drop in crude oil prices. Brent crude, the global oil benchmark, traded 1.16 per cent lower at USD 78.44 per barrel.

The 30-share BSE Sensex surged 397.59 points to 78,826.54 in early trade, while the 50-share NSE Nifty rose by 62.7 points to 24,677.60. Among the major winners from the Sensex pack were InterGlobe Aviation and Larsen & Toubro.

Foreign Institutional Investors (FIIs) bought equities worth Rs 2,446.47 crore on Tuesday, according to exchange data. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that the sharp dip in Brent crude augurs well for the Indian market today.

The growth resilience in the economy and improving corporate earnings growth are seen as positives from the market perspective, while domestic sentiment has also improved with foreign portfolio investors continuing to rebuild positions in Indian equities. Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said that the recent recovery in the rupee, supported by softer crude oil prices and improving global risk sentiment, has further enhanced the appeal of Indian financial assets.