Benchmark equity indices ended higher on Monday, tracking gains across Asian markets, as a sharp decline in Brent crude prices eased concerns over inflationary pressures in oil-importing economies.
Brent crude fell about 3.5% to around $100.20 a barrel, providing relief to domestic equities after six consecutive weeks of losses.
The Sensex jumped 564.03 points, or 0.76%, to close at 74,858.99. The NSE Nifty gained 67.90 points, or 0.29%, to end at 23,414.30, marking its fourth consecutive session of gains. The index has risen 1.3%, or 296 points, over the past four trading sessions.
However, on a weekly basis, benchmark indices have closed in the red for six consecutive weeks.
“Markets extended their recovery on Monday, with the Nifty gaining for the fourth consecutive session as easing crude prices and bargain buying supported sentiment following the recent six-week correction,” said Ajit Mishra, SVP–Research, Religare Broking.
Global cues turned supportive as Brent crude slipped below $101 a barrel amid expectations of a gradual recovery in Saudi oil shipments. The rupee remained relatively stable in the Rs 95.8–96 per dollar range, while foreign institutional investor flows remained in focus amid global uncertainties, Mishra added.
Asian markets were largely higher. South Korea’s Kospi led the gains, rising 1.65%, followed by Japan at 1.38%, Hong Kong at 1.18% and Taiwan at 1.14%. Indonesia was among the major losers, declining 0.88%.
“Improving sentiment ahead of the upcoming US-China talks, renewed hopes of diplomatic engagement between the US and Iran at the UN, and the decline in oil prices and bond yields have provided relief to investors,” said Vinod Nair, Head of Research, Geojit Investments.
Easing concerns over inflation and energy costs supported a broad-based recovery across sectors and improved overall market sentiment, Nair added.
Market breadth, however, remained nearly even, with 2,213 stocks advancing and 2,243 declining on the BSE. Investors’ notional wealth rose by Rs 1.79 lakh crore, taking the total market capitalisation of BSE-listed companies to Rs 481.58 lakh crore.
Pharma led the sectoral gainers, rising 1.16%, followed by realty, healthcare, FMCG and consumer durables. Metals was the top sectoral loser.
Among Sensex constituents, UltraTech Cement, HCL Technologies, Eternal and Titan Company were the top gainers, while Bharti Airtel, Power Grid, Infosys, Adani Ports and Tata Steel were among the major losers.
Domestic institutional investors bought shares worth Rs 2,797.27 crore on Monday, taking their cumulative equity purchases so far this year to Rs 6.02 lakh crore, crossing the Rs 6-lakh-crore mark for the first time.
Foreign portfolio investors, meanwhile, sold shares worth Rs 576.20 crore, according to provisional exchange data.