Indian benchmark equity indices opened higher on Monday, tracking a sharp decline in global crude oil prices that improved investor sentiment and lifted buying across sectors.
The BSE Sensex rose 549.21 points, or 0.72%, to 76,608.98 during early trade, while the NSE Nifty 50 gained 160.95 points, or 0.68%, to 23,928.40.
Broad-based buying pushed all major sectoral indices into positive territory at the opening bell.
The Nifty MidSmall Financial Services Index emerged as the top performer, advancing 1.29%, followed by the Nifty IT Index, which climbed 1.25%. The Nifty Media Index gained 1.06%, while the Nifty FMCG Index added 1%.
Other sectors also traded firmly higher. The Nifty Auto Index rose 0.83%, Nifty Chemicals gained 0.80%, Nifty Private Bank advanced 0.80%, Nifty Realty climbed 0.75%, Nifty Metal added 0.73%, and the Nifty PSU Bank Index was up 0.72%.
Market participants attributed the positive start primarily to easing crude oil prices.
Brent crude, the international oil benchmark, has fallen sharply from around $102 per barrel four days ago to nearly $93 in early Monday trade. During Asian trading hours, Brent slipped more than 7% to trade close to $91 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped more than 7%, falling below $85 per barrel.
Market analysts said the correction in oil prices could provide relief to import-dependent economies such as India by easing inflationary pressures and improving corporate earnings expectations.
"The sharp decline in Brent crude is a positive development for the market. If geopolitical tensions in West Asia continue to ease and oil prices remain under pressure, the domestic market could sustain its current upward momentum," market experts said.
Analysts also noted that weakness in global semiconductor stocks and renewed concerns surrounding artificial intelligence-related investments could encourage foreign portfolio investors (FPIs) to increase allocations to Indian equities.
Asian markets delivered mixed performance during early trading. Japan's Nikkei 225 edged 0.16% higher, Hong Kong's Hang Seng Index gained about 1%, while South Korea's KOSPI declined nearly 1%.
Investors are expected to closely monitor crude oil prices, geopolitical developments in West Asia, foreign investment flows, and upcoming corporate earnings for further direction during the trading week.
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