Mumbai, Jul 27: Market benchmark indices Sensex and Nifty rebounded in early trade on Monday following a sharp decline in crude oil prices amid easing tensions in the West Asia.
The 30-share BSE Sensex jumped 566 points to 76,608.66 in early trade. The 50-share NSE Nifty surged 153.60 points to 23,923.30.
“Market sentiment has improved meaningfully over the weekend after the US and Iran paused military action, easing fears of an immediate supply disruption. Brent crude has corrected sharply, offering a significant tailwind for India through lower inflation expectations, an improved current account outlook and reduced pressure on the rupee,” Rajesh Palviya, Head of Research, Axis Direct, said.
From the Sensex pack, InterGlobe Aviation, Infosys, Eternal, Asian Paints, Bajaj Finance and Bajaj Finance were among the major gainers.
Bharti Airtel and ICICI Bank were the laggards.
Brent crude, the global oil benchmark, tanked 4 per cent lower at USD 92.84 per barrel.
“The sharp dip in Brent crude price from USD 102 four days ago to around USD 93 this morning is a positive sentiment for the market. If the deescalation of the West Asia conflict holds and crude price drifts lower, that can sustain a mild rally in the market,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,892.77 crore on Friday, according to exchange data.
In Asian markets, South Korea’s KOSPI traded lower, while Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were also trading higher.
US markets ended mostly higher.
On Friday, the Sensex declined 331.62 points, or 0.43 per cent, to settle at 76,059.77. The Nifty dipped 102.15 points, or 0.43 per cent, to end at 23,767.45.(PTI)
