Indian benchmark equity indices Sensex and Nifty rallied in early trade on Monday, driven by buying in blue-chip bank stocks and lower crude oil prices. Fresh foreign fund inflows also added to the optimistic trend in the domestic equity market.
Market Performance
The 30-share BSE Sensex climbed 281.40 points to 78,051.03 in early deals, while the 50-share NSE Nifty rallied 74.60 points to 24,347.05. Among the Sensex pack, major winners included Bharat Electronics, HDFC Bank, Axis Bank, ICICI Bank, Bharti Airtel and HCL Tech. On the other hand, Kotak Mahindra Bank, Bajaj Finserv, Power Grid and ITC were among the laggards.
Key Drivers
Brent crude, the global oil benchmark, quoted 0.55 per cent lower at USD 71.72 per barrel, providing support to market sentiment. Additionally, Foreign Institutional Investors (FIIs) bought equities worth Rs 1,355.33 crore on Friday, according to exchange data. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said: “Revival of monsoon and FIIs turning buyers last Friday are positives for the market in the near-term. From this week onwards the market will start responding to the Q1 results which will begin on July 9th.”
Global Cues
In Asian markets, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were quoting higher, while South Korea’s Kospi and Japan’s Nikkei 225 index traded lower. US markets were closed on Friday due to the country’s Independence Day celebrations. Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said: “Geopolitical concerns have continued to recede as the US–Iran situation remains stable, with diplomatic engagement progressing and no major disruptions reported. The easing of tensions has reduced concerns over energy supply risks in the Middle East, underpinning investor confidence across global markets.”
Previous Session
On Friday, the Sensex climbed 261.79 points, or 0.34 per cent, to settle at 77,763.91, while the Nifty went up 95.15 points, or 0.39 per cent, to end at 24,270.85.
