Oil Price Slump Lifts Indian Stocks, Rupee
Indian stocks and government bonds rallied on Monday after a pause in attacks between the US and Iran sent oil prices sharply lower. The Nifty 50 rose 0.96% to close at 23,995.95, while the BSE Sensex gained 1.02% to 76,835.78. Brent crude fell about 9.3% to around $88 a barrel during Indian market hours, reversing much of last week's rise above $100.
The drop in oil prices eased concerns over inflation and India's import bill, which is particularly vulnerable due to the country's nearly 90% dependence on imported crude.
Broad-based gains were seen across sectors, with all 16 major indices advancing. IT stocks led the rise, with a sectoral index gain of 2.3%. Infosys Ltd climbed 3.7% after Jefferies upgraded the sector to neutral from underweight and added the company to its model portfolio.
The RBI's intervention was seen as another factor contributing to the rupee's strength, which recorded its best session in over six weeks. The local currency opened at 96.1475 against the dollar and strengthened to an intraday high of 95.7950, compared with Friday's close of 96.5625.