Indian Markets Soar as Crude Oil Prices Plummet
The Indian stock markets showed a strong rebound in early trade on Monday, with the Sensex and Nifty50 surging. The gains were driven by a sharp decline in Brent crude oil prices to $92.84 per barrel, which had dropped 4% from the previous day. This decline in oil prices is expected to positively impact India's economy by reducing inflation expectations, improving the current account outlook, and strengthening the rupee.
Easing tensions in West Asia, with the US and Iran pausing military action, also contributed to improved market sentiment. The 30-share BSE Sensex jumped 566 points to 76,608.66, while the 50-share NSE Nifty surged 153.60 points to 23,923.30.
Some of the major gainers from the Sensex pack included InterGlobe Aviation, Infosys, Eternal, Asian Paints, Bajaj Finance, and Bajaj Finserv. Bharti Airtel and ICICI Bank were among the laggards. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,892.77 crore on the preceding Friday.
Market experts attributed the positive sentiment to the decline in Brent crude prices and the easing of tensions in West Asia. 'The sharp dip in Brent crude price from $102 four days ago to around $93 this morning is a positive sentiment for the market,' said Rajesh Palviya, Head of Research, Axis Direct.