Sensex, Nifty Open Higher as Crude Oil Slide Lifts Sentiment

Indian equity benchmarks opened firmly higher on Monday, extending last week's gains as a sharp overnight fall in crude oil prices gave investors reason to look past lingering geopolitical risk across West Asia.

The BSE Sensex jumped as much as 478 points intraday to touch 74,773, while the Nifty 50 crossed the 23,400 mark, with both indices building on a positive start that saw the Sensex open around 240 points higher and the Nifty add roughly 50 points in the first few minutes of trade.

Crude oil's retreat drives the rally

The main trigger was a retreat in global crude prices. Brent crude fell about 2.2% to near $101.6 a barrel, while US West Texas Intermediate dropped roughly 2.3% to around $98, as traders weighed improving Saudi oil flows and rising hopes of easing tensions around the Strait of Hormuz. That decline came even as the backdrop of Middle East conflict and the Russia-Ukraine war remained unresolved, underlining how sensitive Indian markets are to even modest shifts in the oil outlook, given the country's heavy reliance on imported crude.

Cheaper oil has an outsized effect on Indian markets because it eases pressure on the current account, the rupee and retail inflation all at once — a combination that tends to lift risk appetite for both foreign and domestic investors. Monday's price action suggests investors are, for now, treating the West Asia risk as a headline overhang rather than an immediate threat to India's macro stability.

Realty and auto lead sectoral gains

Sectorally, Nifty Realty was the standout performer, rising about 1% in early trade, followed by auto stocks, up roughly 0.65%, as rate-sensitive and consumption-linked sectors benefited most from the improved sentiment around inflation. Elsewhere, the picture was more mixed: Nifty IT and PSU bank stocks logged moderate losses even as the broader market advanced, while the midcap and smallcap indices lagged the headline gauges, slipping slightly even as large-caps rallied.

Among individual stocks, UltraTech Cement led the Sensex pack, gaining as much as 3.11% in early trade, with Asian Paints, Trent, Titan and Bajaj Finance also among the notable gainers. On the Nifty 50, InterGlobe Aviation, Sun Pharmaceutical Industries and Reliance Industries featured among the top movers, reflecting a rally that was broad-based across sectors rather than concentrated in any single theme.

A market still watching global cues closely

Monday's gains came even as India's primary market stayed busy, with the mega National Stock Exchange IPO closing for subscription the same day and a clutch of smaller issues also in various stages of bidding — a reminder that liquidity conditions and investor appetite for new paper remain healthy even as benchmark indices push toward fresh highs. With crude prices, US Federal Reserve policy signals and developments in West Asia all still in play, traders said the market's direction from here will likely hinge on whether Monday's oil-driven relief proves durable or gives way to renewed volatility as the week progresses.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.