Stock Markets Surge in Early Trade as Crude Oil Drops Below $100 per Barrel

India’s stock markets opened strongly on Monday, with the BSE Sensex climbing 908.98 points to 76,317.85 and the NSE Nifty rising 262.65 points to 23,977.70, supported by a sharp decline in crude oil prices. Brent crude, the global benchmark, fell 5.58% to $97.76 per barrel, easing concerns over inflation and import costs for India. The drop in oil prices, attributed to hopes of a US-Iran deal, boosted investor sentiment, though markets remain cautious after previous false hopes. Stocks like Mahindra & Mahindra, HDFC Bank, Bajaj Finance, Larsen & Toubro, and InterGlobe Aviation led gains, while Tata Consultancy Services (TCS) and Sun Pharma underperformed. Analysts noted that softer oil prices could improve India’s macroeconomic outlook by reducing inflation pressures and import expenses, benefiting corporate profitability. Foreign Institutional Investors (FIIs) had sold equities worth ₹4,440.47 crore on Friday, though the broader market remained positive. The Sensex had closed up 232 points at 75,415.35, while the Nifty rose 64.60 points to 23,719.30. Asian markets saw mixed movements, with Japan’s Nikkei 225 and Shanghai’s SSE Composite trading higher, while South Korea and Hong Kong markets were closed for holidays. The decline in crude prices, marking a pullback from recent highs above $100, was seen as a positive for India’s economy. Experts cautioned, however, that clarity on the US-Iran negotiations would be crucial for sustained market momentum. The market’s reaction will depend on whether the deal materializes and oil prices remain stable below $100.