Sensex Jumps 500 Points on Oil Drop and Foreign Inflows
Indian benchmarks rallied as Brent crude fell to $101.50 and foreign investors returned to buying.
Key points
- Brent crude fell 2.25 percent to USD 101.50, supporting the Sensex gain of 478 points.
- Foreign institutional investors bought Rs 599 crore in Indian stocks, ending a seven-day sell streak.
- Asian indices rose, with South Korea's Kospi gaining over one percent, aiding the regional rally.
The Sensex gained 478.05 points on Monday morning. This move lifted the index to 74,773.01 levels. Easing crude oil prices drove this initial surge. Brent crude dropped 2.25 percent to USD 101.50 per barrel. Analysts cited Saudi shipment recovery hopes as the cause. This reduction in energy costs directly supported equity valuations. The broader market sentiment improved alongside these specific commodity shifts. Investors reacted quickly to the favorable global economic signals.
Foreign institutional investors reversed their selling trend on Friday. They purchased shares worth Rs 599 crore in Indian equities. This marked the end of seven consecutive selling sessions. Domestic institutional investors also added to their positions. They invested more than Rs 1,000 crore during the session. This combined buying pressure provided immediate liquidity support. Market participants viewed this as a shift in capital flow. The coordinated entry of both foreign and domestic funds stabilized prices.
Global Cues Support Regional Rally
Asian markets traded higher during the early session. South Korea's Kospi index gained more than one percent. This regional strength provided a supportive backdrop for India. Shanghai's SSE Composite and Hong Kong's Hang Seng also rose. US markets ended higher on Friday as well. This positive trend reduced immediate risk aversion globally. Indian equities benefited from this broader risk-on environment. The correlation with global markets remained strong during this period.
Traders engaged in value buying after recent declines. The Nifty and Sensex logged a sixth straight weekly fall. This represented their longest losing streak in six years. Investors bought shares at these lower price levels. Saurabh Jain of SMC Global noted cautious sentiment. He suggested bargain buying might follow the slide. The market is now testing for a reversal. This phase could be short-lived according to strategists.
Technical Levels Define Next Moves
Anand James of Geojit Investments outlined the technical path. He expects consolidation near the 23,400 level. A rise to 23,560 is possible if dips are contained. The support zone sits above 23,280 and 23,260. A break below 23,116 would change the outlook. That scenario points toward lower targets of 22,600. TradingView data reflects these shifting support and resistance lines. The market is currently balancing these opposing technical forces. Traders monitor these specific price levels closely.
