Indian equity benchmarks ended Monday’s session on a firmer note, supported by softer crude oil prices and buying in select sectors. The decline in oil prices helped ease some concerns around inflation and the growth outlook, although broader market participation remained subdued.
The BSE Sensex closed trading over 74,850, soaring more than 550 points, while the NSE Nifty50 ended the session above 23,400, climbing close to 70 points.
Realty, Pharma Stocks Drive Sectoral Gains
The day’s gains were led by select sectors, with Nifty Realty, Nifty Pharma and Nifty FMCG among the stronger performers.
HDFC Life Insurance Company, Sun Pharmaceutical Industries and Dr Reddy’s Laboratories featured among the top gainers on the Nifty50.
The broader market, however, remained relatively weak. The Nifty MidCap index fell 0.27 per cent, while the Nifty SmallCap index declined 0.04 per cent.
On the sectoral front, Nifty IT, Nifty Metal and Nifty PSU Bank were among the underperforming indices.
Crude Oil Prices Ease From Recent Highs
Crude oil remained an important market trigger as prices retreated following a recovery in Saudi shipments despite continued attacks.
Brent crude fell 1.48 per cent to $101.06 per barrel in early Asian trade, while WTI crude declined 1.84 per cent to $98.41.
While lower oil prices can provide some relief to oil-consuming industries such as aviation and paints, Brent remaining above $100 per barrel continues to pose a risk to India’s inflation outlook and import costs.
Global Markets Send Mixed Signals
Global equities offered mixed cues to Indian investors.
US markets ended mixed on Friday, with the S&P 500 rising 0.17 per cent and the Nasdaq Composite gaining 0.40 per cent, while the Dow Jones Industrial Average declined 0.18 per cent.
Asian markets were largely positive at the start of Monday’s session. South Korea’s Kospi rose around 1.1 per cent, while the MSCI Asia-Pacific index excluding Japan gained 0.3 per cent. Japan’s markets remained shut for the Silver Week holiday.
European equities had ended sharply lower in the previous session, with the FTSE 100, DAX and CAC 40 falling 1.45 per cent, 1.60 per cent and 1.49 per cent, respectively.
FII-DII Flows Offer Some Support
Institutional activity provided some support to domestic equities.
Foreign institutional investors were reported as net buyers of Rs 599.54 crore in the cash market on September 18, while domestic institutional investors bought shares worth Rs 1,019.69 crore.
The figures come against a backdrop of continued sensitivity in Indian equities to foreign fund flows, US bond yields and movements in the dollar.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
