Mumbai: Stock markets snapped the five-day losing streak Monday, with the benchmark Sensex jumping by 776 points following a sharp decline in crude oil prices amid easing tensions in West Asia.
The 30-share BSE Sensex jumped 776.01 points, or 1.02 per cent, to settle at 76,835.78. During the day, it soared 841.74 points, or 1.10 per cent, to 76,901.51.
The 50-share NSE Nifty surged 228.50 points, or 0.96 per cent, to end at 23,995.95, ending its five-day losing trend.
Among Sensex firms, Eternal jumped the most by 5.70 per cent. InterGlobe Aviation, Infosys, Bajaj Finance, Asian Paints and Mahindra & Mahindra were also among the gainers.
HDFC Bank, Power Grid and Axis Bank were the laggards.
Brent crude, the global oil benchmark, tanked 9.40 per cent to USD 87.64 per barrel.
“A pause in strikes in West Asia has eased concerns over rising import costs and inflation, triggering a relief rally in markets. The sharp correction in crude oil prices, along with a decline in long-term bond yields, has also raised hopes of a durable resolution, supported by signs of long unwinding,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,892.77 crore on Friday, according to exchange data.
“After five consecutive sessions of losses, the Indian stock market closed on a positive note, supported by broad-based buying and improving global sentiment. Investor confidence strengthened as easing Iran-US tensions pushed crude oil prices lower, reducing inflation concerns for India,” Gaurav Garg, Analyst, Lemonn Markets Desk, said.
The BSE SmallCap Select index jumped 1.71 per cent and MidCap Select index climbed 1.65 per cent.
MidSmall Private Banks Quality Tilt jumped the most by 2.36 per cent, followed by IT (2.30 per cent), Realty (2.25 per cent), Focused IT (2.09 per cent), Services (2 per cent), Auto (1.53 per cent) and Hospitals (1.43 per cent).
Telecommunication emerged as the only laggard. A total of 2,776 stocks advanced, while 1,580 declined and 202 remained unchanged on the BSE.
“Investor sentiment improved after crude oil prices declined sharply following reports of a temporary easing in geopolitical tensions in the Middle East. The positive undertone was further supported by encouraging quarterly earnings from select companies across sectors, while renewed buying in IT stocks added momentum to the recovery,” Ajit Mishra – SVP, Research, Religare Broking Ltd said.
In the last five trading days, the BSE benchmark tanked 2,091.68 points, or 2.67 per cent, and the Nifty declined 566.85 points, or 2.32 per cent.
In Asian markets, South Korea’s KOSPI, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended higher.
Markets in Europe were trading higher. US markets ended mostly higher.
On Friday, the Sensex declined 331.62 points, or 0.43 per cent, to settle at 76,059.77. The Nifty dipped 102.15 points, or 0.43 per cent, to end at 23,767.45.
