Sensex jumps over 500 points: What's behind today's rally?
What's the story
India's benchmark equity indices, the Sensex and Nifty, opened on a positive note today. At around 1:00pm, the Sensex was trading at 74,813.57, up by 519 points or 0.64%. The broader Nifty index also witnessed an upward trend and crossed the 23,400 mark after gaining 63 points. The surge in these indices is primarily attributed to easing crude oil prices and increased foreign institutional investor (FII) buying in Indian equities on Friday after seven consecutive sessions of selling pressure.
Market drivers
Brent crude prices fall by 2.2%
Brent crude futures have eased by 2.2% to $101.6 per barrel, as investors expect a recovery in shipments from Saudi Arabia.
Hariselvan Radhakrishnan, founder and CEO of HST Wealth, said, "Brent crude's retreat offers some relief, but prices remain elevated as the unresolved Middle East conflict leaves the market vulnerable to renewed flare-ups and supply disruptions."
Foreign institutional investors turned net buyers on Friday after seven consecutive sessions of selling pressure, purchasing shares worth ₹599 crore.
Investor activity
Domestic institutional investors also remained active in the market
Domestic institutional investors also remained active in the market, investing over ₹1,000 crore during the session.
The positive trend in Asian equities on Monday, supported by gains in semiconductor stocks due to AI-related demand, further contributed to the market's upward movement.
MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3%, while South Korea's tech-heavy Kospi advanced 1.1%.