Crude Price Drop and Easing Tensions Boost Indian Markets
Indian stock markets, including the Sensex and Nifty, surged in early trade on Monday due to a sharp drop in crude oil prices and easing geopolitical tensions. The benchmark indices recorded significant gains, with the Sensex jumping 470.06 points to 78,564.70 during initial trade.
The decline in Brent crude oil prices, which fell below $83.56 per barrel, was a major catalyst for the market surge. Easing tensions between the US and Iran also improved investor sentiment, as investors unwound the recent risk premium. Foreign Institutional Investors (FIIs) turned net buyers, injecting Rs 277.48 crore into equities on Friday.
The positive monsoon progress in July further contributed to the optimistic market outlook. ITC, Bajaj Finserv, InterGlobe Aviation, and Tata Consultancy Services were among the major winners in the Sensex pack. However, Sun Pharma and Maruti were the laggards.