Sensex Gains 423 Points as Brent Crude Falls to $101
Indian benchmarks rose on Monday as easing oil prices and geopolitical de-escalation supported market sentiment.
Key points
- Sensex rose 423.53 points to 74,718.49 while Nifty traded at 23,376.15 on Monday.
- Brent crude dropped to $101.61 per barrel, marking a fourth straight session of declines.
- Saudi oil shipments through the Strait of Hormuz exceeded 2 million barrels per day.
The Sensex gained 423.53 points on Monday, closing near 74,718.49. This move represented a 0.57 percent increase over the previous day's settlement.
The Nifty 50 index held above 23,360, trading at 23,376.15. This level marked a 0.13 percent rise against the prior close of 23,346.40.
Crude Prices Drive Market Sentiment
Brent crude fell to $101.61 per barrel, marking a fourth consecutive decline. This drop followed Friday’s settlement of $103.87 and reduced supply fears.
The 12-month Brent spread narrowed to $21 from $30. Analysts attribute this shift to improved flows through the Strait of Hormuz.
Geopolitical Factors Ease Supply Concerns
Aramco sold 60 million barrels for September and October loading. This action helped Gulf exports recover to 1.5 million barrels daily.
Saudi shipments through the Strait exceeded 2 million barrels daily in early September. This volume was 1 million barrels higher than August levels.
Technical Levels Define Near-Term Path
Nifty faces resistance at 23,400, with support at 23,200. A breakout above 23,400 could push the index toward 23,600.
Kotak Securities notes that Brent must reclaim $105 to reverse the decline. Otherwise, prices may fall toward $96, impacting rupee stability.
