Indian Markets Soar as Crude Oil Prices Drop Amid Easing Tensions
Indian stock markets ended higher on Monday, August 3, marking their fourth consecutive day of gains. The Sensex rose by 544.39 points, or 0.70%, to settle at 78,639.03, while the Nifty surged 1.60% to end at 24,774.30.
The sharp decline in crude oil prices amid easing geopolitical tensions boosted investor sentiment and foreign fund inflows added to markets' optimism. Brent crude tumbled 4.62% to $83.88 per barrel, providing relief to markets by easing concerns over inflation and corporate earnings.
According to Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, the rollout of the new Closing Auction Session (CAS) rules also contributed to the market's upswing. He stated that the system-driven concentration of liquidity and orders into the new auction structure amplified the end-of-day adjustment rather than a gradual intra-day trend change.
IT sector stocks led the gains, with some companies such as Tata Consultancy Services, Infosys, and InterGlobe Aviation rising by over 2.5%. However, hospital, oil & gas, and healthcare sectors remained laggards.