Indian equity markets opened higher on easing crude oil prices
Mumbai, July 27
Domestic equity benchmark indices opened higher on Monday, supported by a sharp decline in crude oil prices.
Sensex started the session 549.21 points or 0.72 per cent higher at 76,608.98, while Nifty gained 160.95 points or 0.68 per cent to 23,928.40.
All sectoral indices traded in positive territory during the opening session.
Nifty MidSmall Financial Services index emerged as the top gainer, rising 1.29 per cent, followed by Nifty IT, which advanced 1.25 per cent. Nifty Media gained 1.06 per cent, while Nifty FMCG rose 1 per cent.
Among other sectors, Nifty Auto climbed 0.83 per cent, Nifty Chemicals added 0.80 per cent, Nifty Private Bank gained 0.80 per cent, Nifty Realty advanced 0.75 per cent, Nifty Metal rose 0.73 per cent and Nifty PSU Bank traded 0.72 per cent higher.
According to market experts, the sharp decline in Brent crude prices from $102 four days ago to around $93 on Monday morning has emerged as a key positive for market sentiment.
"The sharp dip in Brent crude price from $102 four days ago to around $93 this morning is a sentiment positive for the market. If the de-escalation of the West Asia conflict holds and crude price drifts lower, that can sustain a mild rally in the market," they said.
They added that the correction in global chip stocks and concerns surrounding the artificial intelligence (AI) trade could revive foreign portfolio investor (FPI) interest in Indian equities.
International oil benchmark Brent crude fell more than 7 per cent or about $7 to trade around $91 a barrel. US West Texas Intermediate (WTI) crude declined over 7 per cent, shedding around $6.4 to slip below $85 a barrel.
Asian markets traded on a mixed note. Japan's Nikkei was up 0.16 per cent, Hong Kong's Hang Seng gained around 1 per cent, while South Korea's KOSPI fell nearly 1 per cent in early trade.
— IANS
Reader Comments
Good news for the markets but I'm skeptical about how long this will last. West Asia tensions are still simmering. A temporary dip in crude doesn't mean the rally will sustain. Let's not get too excited yet. 😅
Classic case of oil prices driving sentiment. The FPI interest shift from overpriced global tech to Indian equities makes sense given the valuation gap. Still, retail investors should be cautious—volatility is the only constant in this market.
It's great to see all sectors in the green, especially Nifty IT and Media. With AI trade concerns cooling off, maybe India's IT firms can catch a break. But honestly, I wish the government would use this oil price drop to reduce excise duties permanently.
One week of oil decline and everyone is celebrating. 😂 Meanwhile, our LPG cylinder prices are still sky-high. The market is good for traders but common man's inflation isn't falling as fast. Need more structural reforms in energy pricing.
Interesting times! The correlation between crude and Indian markets is textbook stuff. If this de-escalation in West Asia holds for a few weeks, we might see Nifty testing 24,500 levels soon. Fingers crossed 🤞
N Nikhil C < We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.