Indian equity benchmark indices Sensex and Nifty witnessed significant gains in early trade on Monday, propelled by a rally in Asian markets, a drop in Brent crude oil prices, and robust buying activity by foreign investors.
The 30-share BSE Sensex surged by 639.85 points, reaching 73,728.18 in early trade, building upon the momentum from the previous day's rebound. Similarly, the NSE Nifty climbed 190.1 points to reach 22,337.10.
Major gainers in the Sensex basket included UltraTech Cement, Axis Bank, Bajaj Finance, Larsen & Toubro, Tata Steel, and Tata Motors, contributing to the bullish sentiment. However, HDFC Bank, JSW Steel, Mahindra & Mahindra, and ITC emerged as laggards.
Across Asian markets, Seoul, Tokyo, and Hong Kong traded positively, although Shanghai recorded a slight decline. Meanwhile, Wall Street closed with mixed results on Friday.
Brent crude, the global oil benchmark, witnessed a 0.74% decrease, settling at USD 86.64 per barrel.
This decline in oil prices has been viewed positively by market analysts, signaling potential relief from escalating tensions between Israel and Iran.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked, "The biggest positive for the market in the near-term is that the feared escalation in the Israel-Iran tension is unlikely to happen. The decline in Brent crude from $90 to $87 is a confirmation of this expected de-escalation."
Foreign Institutional Investors (FIIs) contributed to the upbeat market sentiment by turning net buyers on Friday, with equity purchases amounting to Rs 129.39 crore, according to exchange data.
On Friday, the BSE benchmark surged by 599.34 points or 0.83%, settling at 73,088.33, while the NSE Nifty jumped by 151.15 points or 0.69%, closing at 22,147
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