A ceasefire in West Asia and a sharp decline in crude oil prices influenced Asian markets and the Indian equity market, with benchmark indices recording significant gains amid improved global cues.
Reports of a ceasefire in West Asia created a positive environment across global financial markets, with a direct impact on Indian equities. In early trade, the BSE Sensex rose by more than 2,700 points, while the Nifty 50 approached the 24,000 mark.
During morning trade, the Sensex was trading above 77,000, up करीब 3.6 percent, while the Nifty gained more than 3 percent. The move reflected increased investor confidence and a reduction in global risk.
Crude Oil Decline Drives Market Gains
The primary driver of the rally was a sharp decline in crude oil prices. In international markets, Brent crude prices fell by more than 13 percent to around $95 per barrel. For an oil-importing country such as India, this reduces inflationary pressures and supports the management of the current account deficit. Lower input costs also raise expectations of improved corporate profitability.
Most sectors advanced in trading. Of the 30 Sensex constituents, 29 opened in positive territory, indicating broad-based market strength. In the aviation sector, shares of InterGlobe Aviation rose करीब 9 percent, as lower crude oil prices reduce fuel costs for airlines.
Infrastructure, banking, and financial stocks also saw buying interest. ICICI Bank, HDFC Bank, Larsen & Toubro, and Adani Ports recorded notable gains. The IT sector remained relatively subdued, with Tech Mahindra registering a marginal decline.
Broad-Based Participation Across Market Segments
The rally extended beyond large-cap stocks, with midcap and smallcap indices also posting gains. The Nifty Midcap index rose more than 3 percent, while the smallcap index advanced by a similar margin. Sectorally, real estate, auto, and financial services stocks led the gains, reflecting broad investor participation across segments.
