Indian Equities Rise as Crude Oil Prices Plummet

The Indian equity markets opened higher on Monday, driven by a sharp decline in crude oil prices. The Sensex rose 549.21 points or 0.72 per cent to start the session at 76,608.98, while the Nifty gained 160.95 points or 0.68 per cent to reach 23,928.40.

All sectoral indices were in positive territory during the opening session. The Nifty MidSmall Financial Services index led the gains, rising 1.29 per cent, followed by Nifty IT, which advanced 1.25 per cent. Nifty Media and Nifty FMCG also saw significant gains of 1.06 per cent and 1 per cent respectively.

Market experts attribute the positive sentiment to the sharp decline in Brent crude prices from $102 four days ago to around $93 on Monday morning. If the de-escalation of the West Asia conflict holds and crude price drifts lower, it can sustain a mild rally in the market, according to them.

The correction in global chip stocks and concerns surrounding the artificial intelligence (AI) trade could revive foreign portfolio investor (FPI) interest in Indian equities. International oil benchmark Brent crude fell more than 7 per cent or about $7 to trade around $91 a barrel on Monday.