Indian Stock Markets Extend Gains as Brent Crude Drops Below Rs 100
Indian stock markets continued their upward trajectory for a second day, with the Sensex and Nifty indices gaining ground. The rally was driven by a significant drop in Brent crude oil prices, which fell below the Rs 100 per barrel mark, easing concerns over macroeconomic pressures. Strong buying activity in banking stocks and heavyweight Reliance Industries further bolstered investor confidence.
The 30-share BSE Sensex surged by 685.34 points, or 0.95 percent, closing at 73,067.81. Similarly, the 50-share NSE Nifty climbed 220.35 points, or 0.98 percent, to end at 22,776.10. Among the top performers were Trent, which jumped 12.78 percent, followed by Kotak Mahindra Bank, Hindustan Unilever, and Reliance Industries. However, some laggards included Tech Mahindra, Titan, Bajaj Finance, and ITC.
The decline in Brent crude oil prices, which dropped 1.70 percent to Rs 98.59 per barrel, played a crucial role in lifting market sentiment. Ponmudi R, CEO of Enrich Money, noted that the fall in crude oil prices helped ease some of the macroeconomic pressures weighing on investor sentiment. This positive momentum was further supported by gains in global markets, with Asian and European markets trading higher, following gains in US markets.
Despite the positive trend, foreign institutional investors (FIIs) offloaded equities worth Rs 4,699.14 crore on Monday, according to exchange data. The overall market performance highlighted the resilience of Indian equities amidst fluctuating global conditions.