Crude oil slump, IT rally lift Nifty above 24,700; Sensex gains 544 points

Indian benchmark indices extended their winning streak to a fourth straight session on Monday, led by a sharp decline in global crude oil prices, strong gains in IT stocks and sustained foreign fund buying.

The NSE Nifty 50 surged 390.70 points, or 1.60%, to close at 24,774.30, reclaiming the 24,700 mark, while the BSE Sensex advanced 544.39 points, or 0.70%, to settle at 78,639.03. During the session, the 30-share index had climbed as much as 800 points before paring some gains.

Crude slump, FII buying fuel rally

Investor sentiment improved after Brent crude futures dropped over 4.6% to around $83.9 a barrel amid easing geopolitical tensions and expectations of renewed dialogue between the US and Iran. Lower crude prices are viewed as positive for India, a major oil importer, as they ease inflationary pressures and improve corporate profitability.

Foreign institutional investors (FIIs) also remained supportive after purchasing Indian equities worth ₹277.48 crore on Friday. Overseas investors had turned net buyers in July after four consecutive months of selling, infusing over ₹20,200 crore into domestic equities.

"The decline in crude oil prices, driven by expectations of renewed dialogue between the US and Iran, provided relief to markets by easing concerns over inflation and corporate earnings. Market sentiment was further supported by a rebound in FII inflows and a strengthening rupee, although elevated US bond yields remain a key risk to the sustainability of foreign flows into emerging markets," said Vinod Nair, head of research, Geojit Investments.

IT leads sectoral rally; media bucks trend

Buying was broad-based across sectors, with Nifty IT emerging as the top performer, jumping 3.28% as heavyweight technology stocks rallied. Nifty Private Bank gained 1.90%, while Nifty Bank climbed 1.72%. Nifty FMCG also rose 1.72%, followed by Nifty Auto (1.46%), Nifty Metal (1.43%) and Nifty Realty (1.31%). Nifty Media was the lone major sectoral loser, slipping 3.09%.

Grasim tops gainers; pharma stocks drag

Among Nifty constituents, Grasim Industries was the biggest gainer, rising nearly 4.9%, followed by Tata Consultancy Services, InterGlobe Aviation, Infosys and Shriram Finance. On the other hand, Apollo Hospitals, Sun Pharmaceutical Industries, Maruti Suzuki, ONGC and Tech Mahindra ended as the top losers.

Asian markets ended on a mixed note. South Korea's Kospi tumbled more than 5%, while Japan's Nikkei 225 and China's Shanghai Composite settled lower. Hong Kong's Hang Seng ended in positive territory.

European markets were trading higher in afternoon deals, taking cues from Wall Street, where US equities had ended higher on Friday.