Indian IT Stocks Surge 2% on Lower Oil Prices and US Rate Hopes

Indian IT stocks saw significant gains on Monday as investors reacted to reduced geopolitical tensions and lower oil prices. The Nifty IT index rose over 2% during the morning session, outperforming the benchmark indices.

The rally was supported by a decline in crude oil prices, which had previously spiked due to regional instability. As Brent crude prices pulled back from recent highs, concerns over an energy-driven inflationary shock began to subside.

Lower oil prices are generally viewed as a positive factor for the Indian market, as they can help stabilize the Indian Rupee and improve the country's current account deficit outlook.

The improved market sentiment was also driven by shifting expectations regarding US interest rates. With market data suggesting a reduced probability of aggressive rate hikes, the outlook for technology stocks has improved.