The Indian stock market continued its strong rally on Monday. Broad-based buying was witnessed in the domestic market, driven by a sharp drop in global crude oil prices and growing confidence among foreign investors (FIIs). This surge led the key indices to close at record highs.
Market Overview
At the close of trading, the Bombay Stock Exchange (BSE) benchmark 30-share index, ‘Sensex’, ended at 78,639.03, up by 544.39 points or 0.70 percent. During the day’s session, the Sensex had surged by as much as 800.46 points, touching a high of 78,895.10.
Meanwhile, the National Stock Exchange (NSE) 50-share index, ‘Nifty’, jumped 390.70 points or 1.60 percent to close at 24,774.30. This market rally has led to a significant increase in investor wealth.
Key Drivers of the Rally
Drop in Crude Oil Prices: In the international market, the global oil benchmark, Brent crude, fell 4.62 percent to $83.88 per barrel. Hopes of renewed talks between the US and Iran have eased geopolitical tensions, causing oil prices to plummet. Since India imports over 80% of its oil requirements, cheaper oil brings significant relief to the Indian economy and boosts corporate profitability.
Return of Foreign Investors: Foreign Institutional Investors (FIIs) have resumed buying in the market. In July, foreign investors invested ₹20,200 crore in Indian equities.
Top Gainers and Losers
Shares from the aviation and IT sectors shone the brightest in today’s trading session. Among Sensex companies, InterGlobe Aviation (IndiGo), Tata Consultancy Services (TCS), Infosys, ITC, and Axis Bank were the top gainers. Conversely, shares of Sun Pharma, Bharti Airtel, Maruti Suzuki, and Tata Steel recorded declines due to selling pressure.