Indian benchmark indices closed higher on Monday, September 21, supported by softer crude oil prices, declining bond yields and expectations of diplomatic engagement on key global issues. The Nifty 50 advanced 0.29 per cent, while the Sensex climbed 564 points.
The Nifty 50 ended at 23,414.30 after gaining 67.90 points, or 0.29 per cent. The BSE Sensex settled at 74,858.99, up 564.03 points, or 0.76 per cent.
Vinod Nair, Head of Research at Geojit Investments, said market sentiment improved ahead of the upcoming US-China talks and amid renewed hopes of diplomatic engagement between the US and Iran at the United Nations. Falling oil prices and bond yields also helped ease pressure on investors.
Nair said reduced concerns over inflation and energy costs had supported a broad-based recovery across sectors. He added that the earnings cycle appeared to be improving and that relatively attractive valuations in selected areas continued to offer support to the medium-term outlook for equities.
He cautioned, however, that geopolitical developments and expectations surrounding interest rates would remain important factors influencing investor behaviour and market direction in the near term.
On the NSE, the Nifty PSU Bank and Nifty Metal indices were the only sectoral indices to finish in negative territory. They declined 0.05 per cent and 0.62 per cent, respectively.
The Nifty Auto index rose 0.21 per cent, while the Nifty FMCG index gained 1.19 per cent. The Nifty IT index edged up 0.03 per cent, Nifty Media advanced 0.19 per cent and Nifty Pharma jumped 1.27 per cent.
Eternal, HCL Tech, SBI Life, Sun Pharma, ITC and Max Health figured among the leading gainers on the Nifty 50. Bharti Airtel, Adani Ports, Bajaj Finance, Adani Enterprises and Power Grid were among the major decliners.
Brent crude fell below USD 102 per barrel and was trading at USD 101.94 per barrel at the time of reporting.
Rajeev Sharan, Head of Research at Brickwork Ratings, said the decline in crude prices offered relief after the sharp rise recorded last week. Brent had eased from around USD 108 to close to USD 102, marking its first weekly decline in three weeks.
Sharan attributed the cooling in prices to reduced concerns over Saudi supply disruptions. Saudi Arabia had started routing additional cargoes to Asian buyers through ship-to-ship transfers near the Strait of Hormuz, while higher loadings helped ease fears of a complete export stoppage following the pipeline attack. He said the development was particularly positive for India, which is a major crude oil importer.
In the commodities market, 24-karat gold declined 0.61 per cent to Rs 1,53,436 per 10 gram. Silver was trading at Rs 2,40,200 per kg at the time of reporting.
Major Asian markets also closed higher. Japan's Nikkei 225 rose 1.36 per cent to 65,018, while Hong Kong's Hang Seng gained 1.04 per cent to 25,010. Taiwan's Weighted Index advanced 1.13 per cent to close at 47,718, and South Korea's KOSPI surged 1.62 per cent to 7,007.
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