Nifty tops 24,100, Sensex gains nearly 300 points as easing West Asia tensions lift sentiment

MUMBAI: Indian stock markets extended their recovery on Monday, supported by easing tensions in West Asia and a decline in crude oil prices, with both benchmark indices ending in positive territory. The Nifty 50 index closed at 24,102.90, gaining 89.80 points, or 0.37 per cent. The BSE Sensex settled at 77,094.07, up 291.17 points, or 0.38 per cent.

Market experts said investors remained focused on developments surrounding the US-Iran negotiations, while lower crude oil prices and strength in key sectors supported overall market sentiment.

Vinod Nair, Head of Research at Geojit Investments, said, “The market traded within a narrow range, albeit with a positive bias, as investors continued to assess the progress of US-Iran negotiations. Overall sentiment remained constructive, supported by outperformance in utilities, banking, and healthcare sectors.”

He, however, cautioned that concerns over the progress of the monsoon could emerge as a risk factor for the economy.

“However, concerns around the slow progress of the monsoon could lead to inflationary pressures, potentially impacting consumer sentiment and demand in agriculture-linked segments. While this may moderate near-term momentum, the broader outlook remains favourable, supported by a resilient earnings trajectory and continued policy backing, which underpin a constructive medium-term view,” Nair added.

On the sectoral front, most NSE indices ended in the green. Nifty Media emerged as one of the top performers, rising 1.42 per cent, while Nifty Pharma gained 1.23 per cent. Nifty IT advanced 0.74 per cent, Nifty Metal rose 0.59 per cent and Nifty PSU Bank gained 0.51 per cent.

Nifty Auto closed 0.34 per cent higher, while Nifty Realty rose 0.22 per cent. Only Nifty FMCG and Nifty Consumer Durables ended the session in negative territory. Meanwhile, crude oil prices continued to soften, providing relief to investors. Brent crude oil declined 1.87 per cent to USD 79.06 per barrel at the time of filing this report. In the currency market, the Indian rupee traded around 94.66-67 against the US dollar.

Currency expert K N Dey said that expectations of substantial foreign currency inflows through the RBI’s FCNR(B) measures could support the domestic currency in the coming days.

“Today rupee is being trading at 94.66-67 at this moment. As seen as US was closed on Friday, so there are no inflows coming in today. Also, with reports coming in that the RBI’s FCNR could get in somewhere more than USD 50 billion, I think they would start coming any moment from maybe from as early as tomorrow onwards,” he said.

“And possibility is there, if we get close to anywhere USD 50 billion, then the strength of the rupee will definitely be there. And there is a high chance that rupee could trade in the range of 92.75 to 93.25 in the coming week,” Dey added.

Precious metals also witnessed gains on Monday. Gold prices rose more than 1.2 per cent to Rs 1,49,032 per 10 grams for 24 karat gold, while silver prices climbed 1.99 per cent to Rs 2,37,825 per kg at the time of filing this report.

Other major Asian markets also ended higher. Japan’s Nikkei 225 index surged 1.71 per cent to 72,490; Singapore’s Straits Times gained 0.22 per cent to 5,204; Taiwan’s weighted index rallied 2.67 per cent to 47,741, while South Korea’s KOSPI index rose 0.68 per cent to 9,114.

The positive performance across regional markets, coupled with easing crude oil prices and hopes of foreign inflows, helped support Indian equities as investors continued to monitor global geopolitical developments. (ANI)