The Indian equity market on Monday opened in the green as the US and Iran maintained peace despite recent escalations and the closure of the Strait of Hormuz.
The BSE Sensex opened over 600 points higher, while the NSE Nifty climbed over 160 points, as easing geopolitical tensions, falling crude oil prices and a strong rally in IT stocks lifted investor sentiment.
At 10:30 am, the BSE Sensex was up 636.62 points, or 0.84 per cent, at 76,696.39, while the NSE Nifty50 rose 159.05 points, or 0.67 per cent, to 23,926.50.
Buying was reported across all segments, with major sectoral indices trading in the green and India VIX dropping sharply, indicating easing market volatility.
Brent crude, an international benchmark for oil, fell 4.45 per cent to $92.47 per barrel, while WTI crude dropped 4.71 per cent to $85.10 after the United States and Iran paused military strikes over the weekend, raising hopes of a de-escalation in the Middle East conflict.
This decline follows Brent crude briefly crossing the $100-a-barrel mark last week, which had raised concerns over inflation, India’s import bill, and corporate earnings.
“The sharp drop in Brent crude from $102 just four days ago to around $93 this morning is positive for market sentiment.
If the de-escalation in West Asia holds and crude prices continue to ease, it could support a sustained mild rally in the market,” he said.
The Nifty IT index rose 2.44 per cent, emerging as the top-performing sector on Dalal Street.
Infosys jumped over 3 per cent, Tech Mahindra gained 2.41 per cent, HCLTech climbed 2.23 per cent and TCS advanced 2.18 per cent, lending strong support to both the Sensex and Nifty.
Also read: Rupee gains 28 paise to 96.25 against US dollar
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