Domestic equity benchmark indices ended sharply higher on Monday, supported by a decline in crude oil prices, renewed foreign institutional investor (FII) inflows and a stronger rupee, while investors remained focused on the Reserve Bank of India’s upcoming monetary policy decision.
The BSE Sensex settled at 78,639.03, up 544.39 points or 0.70 per cent, while the Nifty 50 closed at 24,774.30, gaining 390.70 points or 1.60 per cent.
According to market experts, easing crude oil prices boosted investor sentiment by reducing concerns over inflation and corporate earnings.
Vinod Nair, Head of Research at Geojit Investments, said expectations of renewed dialogue between the United States and Iran led to a decline in crude oil prices, providing relief to equity markets.
He said market sentiment was further supported by a rebound in FII inflows and the strengthening of the rupee, although elevated US bond yields continue to pose a risk to sustained foreign investment in emerging markets.
Among sectoral indices, Nifty IT emerged as the top performer, rising 2.68 per cent, followed by Nifty FMCG, which gained 1.72 per cent. Nifty Metal advanced 1.55 per cent, Nifty Auto rose 1.48 per cent, Nifty PSU Bank gained 1.41 per cent, Nifty Consumer Durables climbed 1.39 per cent, Nifty Oil & Gas added 0.97 per cent, while Nifty Pharma ended 0.49 per cent higher. Nifty Media was the only major sectoral index to close in negative territory, declining more than 3 per cent.
Nair said the first-quarter earnings season has so far remained better than expected, with small-cap companies outperforming their large- and mid-cap peers.
He added that investors would closely monitor the RBI’s monetary policy for guidance on inflation, liquidity conditions and the future policy trajectory, although the central bank is widely expected to keep interest rates unchanged.
Among Asian markets, Hong Kong’s Hang Seng rose 0.54 per cent, while Japan’s Nikkei 225, South Korea’s KOSPI and Singapore’s Straits Times ended lower.
(ANI)
