Oil Price Fall Fuels Market Rally

Market capitalisation (mcap) of BSE-listed companies jumped by nearly Rs1.35 lakh crore to Rs463.63 lakh cr or $5.51 trn

Mumbai: Benchmark BSE Sensex jumped nearly 592 points, while Nifty reclaimed the 25,000 level on Monday following gains in IT and banking shares amid a firm trend in global markets. The 30-share BSE Sensex jumped 591.69 points or 0.73 per cent to close at 81,973.05 points. During the day, it surged 690.81 points or 0.84 per cent to hit a high of 82,072.17. The NSE Nifty rose 163.70 points or 0.66 per cent to settle at 25,127.95. In the intraday trade, the benchmark indices climbed 195.5 points or 0.78 per cent to 25,159.75.

“A sharp fall in crude oil prices provided a major impetus to the markets, as markets ended in positive territory led by gains in banking, IT and realty stocks. European stocks were mixed on Monday after China’s stimulus plans failed to inspire confidence among investors, who focused on the earnings season and the European Central Bank’s policy meeting later this week, Deepak Jasani, Head of Retail Research at HDFC Securities.

Market capitalisation of BSE-listed companies jumped by nearly Rs1.35 lakh crore to Rs4,63,62,781.71 ($5.51 trillion).

“The Indian market is demonstrating resilience, with subdued Q2 earnings expectations seemingly priced in and oil prices declining. The IT and financial sectors are attracting buying interest after recent corrections,” Vinod Nair, Head of Research, Geojit Financial Services said.

In the broader market, the BSE midcap gauge rose 0.28 per cent and smallcap index by 0.06 per cent.

“The recovery may not fuel strong bullish sentiment, as FIIs deserting Indian markets this month coupled with lingering West Asia conflict has created a lot of uncertainty among the investors,” said Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.

Sector-wise, Realty surged the most by 1.53 per cent. Bankex (1.03%), IT (1.01%), Financial Service and Teck by 0.88 per cent each, Consumer Durables (0.69%) and Telecommunication (0.68%) were among the gainers. Commodities slipped by 0.31 per cent, followed by Metal (0.14%), Oil & Gas (0.06%) and Services (0.04%).