Mumbai: Indian stock markets rebounded strongly in morning trade on Monday as crude oil prices fell sharply and tensions in West Asia eased.
At 10:48 am, the 30-share BSE Sensex was trading 541.41 points, or 0.71 percent, higher at 76,601.19.
The index opened at 76,608.98 and touched a morning high of 76,715.64. Its lowest level during the session was 76,517.85.
At 10:50 am, the NSE Nifty 50 was up 149.90 points, or 0.63 percent, at 23,917.35.
The Nifty opened at 23,928.40 and moved between 23,891.55 and 23,964.50 during morning trade.
Oil Relief
Market sentiment improved after the US and Iran paused military action, reducing fears of an immediate disruption in global oil supplies.
Brent crude, the global oil benchmark, dropped 4 percent to around USD 92.84 per barrel. It had traded near USD 102 per barrel four days earlier.
Lower crude oil prices are positive for India as the country imports most of its energy needs. Cheaper oil can help control inflation, improve the current account and reduce pressure on the rupee.
Rajesh Palviya, Head of Research at Axis Direct, said the fall in crude prices had provided a major boost to the domestic market.
Stocks Rise
InterGlobe Aviation, Infosys, Eternal, Asian Paints and Bajaj Finance were among the major Sensex gainers. Bharti Airtel and ICICI Bank traded lower.
VK Vijayakumar of Geojit Investments said a sustained easing of the West Asia conflict and a further decline in crude prices could support a mild market rally.
Asian markets showed a mixed trend. South Korea’s KOSPI traded lower, while Japan’s Nikkei 225, China’s Shanghai Composite and Hong Kong’s Hang Seng gained.
US markets ended mostly higher in the previous session.
Foreign institutional investors sold Indian shares worth Rs 3,892.77 crore on Friday, according to exchange data.
On Friday, the Sensex had fallen 331.62 points to 76,059.77, while the Nifty declined 102.15 points to close at 23,767.45.
