Sensex jumps 550 pts, Nifty above 24,750 as crude cools; rally extends to fourth day

Indian equity benchmarks closed sharply higher on Monday, extending their winning run to a fourth straight session. The Sensex settled 550 points up, while the Nifty finished above the 24,750 mark, as a decline in crude oil prices lifted investor sentiment across the board.

The rally came amid easing geopolitical concerns after reports that the US had halted planned strikes on Iran. The development helped cool global crude benchmarks, a major positive for India, which imports over 80 per cent of its oil requirement.

Crude prices soften, sentiment improves

Brent crude saw notable softening in early trade, providing relief to market participants worried about inflationary pressures and their impact on domestic interest rates. A fall in oil prices typically reduces import costs, narrows the current account deficit, and supports the rupee.

Analysts pointed to the drop in crude as one of the primary triggers for Monday's gains. The move also aided oil marketing companies and aviation stocks, which benefit directly from lower fuel costs.

Broad-based buying on Dalal Street

The market breadth remained positive, with advances outnumbering declines on the BSE. Buying was visible across sectors, including financials, IT, auto, and metal, though index heavyweight Reliance Industries and banking majors contributed significantly to the Sensex's rise.

Midcap and smallcap indices also traded firm, reflecting improved risk appetite among retail and institutional investors. Foreign institutional investors have turned net buyers in recent sessions, adding to the positive momentum.

Geopolitical overhang eases

The reported halt in US strikes on Iran was a key catalyst. Earlier fears of a wider conflict in the Middle East had kept markets on edge, with crude prices rising sharply. Any escalation would have threatened global supply chains and pushed oil prices higher, a risk that now appears to have receded for the moment.

Traders, however, remained cautious, noting that the situation could change quickly. The geopolitical landscape remains fluid, and any fresh development could reverse the sentiment just as fast.

What lies ahead

Market participants will now watch for cues from global crude inventory data and any further diplomatic moves involving Iran. Domestically, the trajectory of monsoon rains and upcoming macroeconomic data points will be in focus.

With the Nifty reclaiming the 24,750 level, charts suggest the index may attempt to test higher zones in the coming sessions. But much depends on oil prices staying soft and global risk appetite holding up. Investors are advised to keep a close watch on geopolitical headlines, as the current calm could prove fragile.