Sensex Rises 423 Points as Brent Crude Falls to $101
Indian benchmarks climbed on Monday following a fourth straight session of falling oil prices, with Brent dropping to $101.
Key points
- Sensex rose 423.53 points to 74,718.49 as Brent crude fell to $101.61 per barrel.
- Nifty Realty led sector gains with over 1% growth, while IT and media stocks declined.
- Saudi shipments through the Strait of Hormuz exceeded 2 million barrels per day in early September.
The Sensex gained 423.53 points on Monday, reaching 74,718.49. This rise followed a fourth consecutive session of falling crude oil prices, which relieved pressure on import costs. The Nifty index also advanced, holding above the 23,360 level despite mixed sectoral performance.
Brent crude dropped to $101.61 per barrel from Friday's settlement of $103.87. This decline helped stabilize sentiment in Mumbai markets, where the rupee and equity indices showed resilience. The Times of Oman reported that this easing in energy costs provided a crucial support for domestic equities.
Crude oil prices ease significantly
Market participants are pricing in potential diplomatic contacts between the US and Iran at the UN. Improved flows through the Strait of Hormuz further contributed to the downward pressure on oil. Saudi shipments through the strait exceeded 2 million barrels per day in early September.
Aramco sold approximately 60 million barrels for September and October loading. This activity helped Gulf exports recover to between 1 and 1.5 million barrels per day. The 12-month Brent spread narrowed to around $21, down from roughly $30 earlier in the month.
Sector performance shows mixed results
Nifty Realty emerged as the top gainer, surging over one percent. In contrast, IT, media, metal, and PSU bank stocks traded in the red. Major gainers included UltraTech, IndiGo, and Asian Paints, while Adani Ports and Bharti Airtel lagged.
Gold prices also eased, trading at approximately $4,367.88 per ounce. Analysts noted that the precious metal often moves inversely to risk assets during periods of geopolitical clarity. The stability in crude prices reduced the immediate inflationary threat to Indian imports.
Analysts watch technical levels closely
Vipin Dixena identified 23,400 as the immediate hurdle for the Nifty index. A sustained breakout above this level could push the index toward 23,500 or 23,600. Support remains at 23,200, with a stronger zone near 23,100.
Anindya Banerjee from Kotak Securities suggested that Brent needs to reclaim $105 to halt the decline. If it fails, prices could fall toward $96. The outcome of US-Iran talks starting Tuesday will determine the direction of crude and the rupee.
