Indian equity markets extended their gains for a fourth consecutive trading session on Monday, with benchmark indices ending sharply higher as falling global crude oil prices, easing geopolitical tensions and renewed foreign investor buying boosted market sentiment.
The BSE Sensex rose 544.39 points (0.70%) to close at 78,639.03, while the NSE Nifty 50 surged 390.70 points (1.60%) to settle at 24,774.30.
Crude Oil Decline Lifts Investor Sentiment
Markets rallied after Brent crude oil prices dropped 4.62% to $83.88 per barrel, easing concerns over inflation and input costs for Indian businesses.
The decline followed expectations of renewed diplomatic engagement between the United States and Iran, reducing fears of supply disruptions in global energy markets.
Lower oil prices are generally positive for India, one of the world’s largest crude oil importers, as they help reduce inflationary pressures and improve corporate profitability.
Foreign Investors Return
Investor confidence was also supported by continued foreign institutional buying.
According to exchange data:
- Foreign Institutional Investors (FIIs) purchased equities worth ₹277.48 crore on July 31.
- After four consecutive months of selling, FIIs turned net buyers in July, investing nearly ₹20,200 crore in Indian equities.
Analysts attributed the renewed inflows to attractive market valuations, improving corporate earnings and easing global uncertainties.
IT Stocks Lead the Rally
Technology stocks emerged as the biggest gainers during the session.
Major Sensex gainers included:
- InterGlobe Aviation
- Tata Consultancy Services (TCS)
- Infosys
- Eternal
- ITC
- Axis Bank
Among sectoral indices:
- IT: +2.53%
- Focused IT: +2.49%
- Services: +1.97%
- Industrials: +1.23%
- Commodities: +1.20%
- Metal: +1.14%
- FMCG: +1.13%
- PSU Banks: +1%
Healthcare, hospitals and oil & gas stocks underperformed the broader market.
New Closing Auction System Introduced
Monday also marked the rollout of the new Closing Auction Session (CAS) framework.
Under the revised mechanism:
- Continuous trading in F&O-linked stocks ends at 3:15 PM.
- A 20-minute closing auction determines the official closing price.
- The system aims to improve price discovery, execution efficiency and settlement accuracy, particularly for derivatives and passive investment funds.
Market participants noted that the new framework contributed to increased activity during the final minutes of trading.
Four-Day Market Rally Continues
Over the last four trading sessions:
- Sensex has gained 1,873.11 points (2.44%)
- Nifty has advanced 788.95 points (3.28%)
Analysts believe easing geopolitical risks, declining crude oil prices, improving foreign capital inflows and resilient domestic fundamentals continue to support positive market momentum, although elevated U.S. bond yields remain a key factor to watch.
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