Indian stock markets started Monday on a strong note, with the Sensex gaining more than 400 points and the Nifty crossing 23,400 in early trade. A drop in crude oil prices, fresh buying in key stocks and positive global cues lifted investor sentiment after weeks of market weakness.
The rally came after both benchmarks had faced pressure in recent sessions, with investors closely tracking geopolitical tensions, foreign fund flows and movements in oil prices.
Buying was visible across several sectors, although the gains were not uniform. UltraTech Cement, Asian Paints and Titan emerged among the leading gainers in the Sensex pack. UltraTech rose more than 3% in early trading, while Asian Paints and Titan also recorded strong gains.
On the other hand, Power Grid, Infosys and Bharti Airtel were among the notable losers. Weakness in some IT and utility stocks limited the broader market’s gains.
The broader market also remained positive, with buying seen in pharma, FMCG and realty stocks. Market breadth was favourable as a large number of stocks traded in the green during the opening hours.
A major support for Indian equities was the easing of crude oil prices. Brent crude slipped towards the $101-$102 a barrel range after rising sharply last week amid concerns over oil supplies from the Middle East.
Lower crude prices are positive for India because the country imports a large share of its oil requirements. A sustained decline could help ease pressure on inflation, the trade deficit and the Indian rupee.
However, oil prices remain above the $100 mark, keeping West Asia tensions and the US-Iran conflict firmly in focus. Any fresh disruption to supplies could push crude prices higher and put pressure on Indian markets.
Foreign institutional investors provided another positive signal after turning buyers at the end of last week. Foreign investors bought Indian equities worth around ₹599 crore on Friday, breaking a seven-session selling streak.
Domestic institutional investors also remained buyers, providing additional support to the market.
Despite the latest buying, foreign fund outflows remain a concern. Foreign portfolio investors have continued to reduce their exposure to Indian equities during September, adding to pressure on the benchmarks.
The Indian rupee opened at around ₹95.81 against the US dollar, compared with Friday’s close of ₹95.87.
The currency received some support from softer crude prices and improved market sentiment. However, the rupee remains under pressure because of elevated oil prices, overseas fund outflows and broader dollar strength.
Asian markets also provided a positive backdrop for Indian equities. Technology and semiconductor stocks gained in several Asian markets, helped by continued optimism around artificial intelligence-related demand.
US markets ended mostly higher in the previous session, with the Nasdaq and S&P 500 gaining, while the Dow closed slightly lower. The positive performance of technology stocks provided some support to Asian markets at the start of the new week.
The focus for investors remains on whether the early gains can hold through the session. Crude oil prices, US-Iran tensions, foreign institutional flows, the rupee and global market trends are likely to remain important triggers for the Sensex and Nifty.
Monday’s rebound comes after a prolonged period of weakness in Indian equities. The market will now look for sustained buying interest to determine whether the latest recovery can continue in the coming sessions.