Indian Stock Market Surges as Crude Oil Prices Plummet
The stock market in India rebounded strongly on Monday morning, following a sharp decline in crude oil prices amid easing tensions between the US and Iran. The Sensex jumped 566 points to 76,608.66, while the Nifty surged 153.60 points to 23,923.30.
Rajesh Palviya, Head of Research at Axis Direct, attributed the improvement in market sentiment to the pause in military action between the US and Iran. He noted that Brent crude had corrected sharply, offering a significant tailwind for India through lower inflation expectations and an improved current account outlook.
Brent crude prices tanked 4% to $92.84 per barrel, down from $102 four days ago. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said that if the de-escalation of the West Asia conflict holds and crude price drifts lower, it can sustain a mild rally in the market.
The Sensex had declined 331.62 points on Friday, while the Nifty dipped 102.15 points. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,892.77 crore on Friday.