Sensex Surges 700+ Points, Nifty Reclaims 24,500 as Oil Eases, Global Risk Sentiment Improves

Indian equities kicked off the week with a strong rally, buoyed by falling crude oil prices, easing geopolitical tensions in West Asia and renewed optimism among global investors. The Sensex surged more than 700 points during Monday's trade, while the Nifty climbed back above the 24,500 mark as buying returned across sectors.

The rally was driven by a combination of global and domestic tailwinds. Softer crude prices after signs of progress in US-Iran diplomacy improved sentiment for oil-importing economies like India, while easing geopolitical risks triggered a broader risk-on mood across global markets.

Domestic factors added further momentum. Strong July automobile sales, the return of foreign portfolio investors after months of outflows and improving dollar liquidity boosted confidence, helping benchmark indices extend gains.

Metal stocks led the advance, while heavyweight banking, IT and infrastructure shares also traded firmly in positive territory. Companies such as Bajaj Finance, HDFC Bank, TCS, Infosys, NTPC, SBI, Mahindra & Mahindra and Adani Ports were among the major gainers.

Foreign investors also provided support after turning net buyers in July, marking the first month of positive equity inflows since February. Separately, the Reserve Bank of India said the country had attracted USD 40.8 billion in foreign currency inflows since mid-June through FCNR(B) deposits, overseas borrowings and external commercial borrowings, strengthening liquidity expectations.

Market expert Ajay Bagga said the sharp fall in crude prices had removed a significant geopolitical risk premium, offering immediate relief to energy-importing economies and improving the inflation outlook. He added that the combination of renewed US-Iran negotiations and coordinated global policy actions had shifted investor sentiment decisively towards risk assets.

Analysts, however, cautioned that while the overall tone remains positive, investors are likely to focus increasingly on stock-specific opportunities rather than expect a broad-based rally. With the RBI's Monetary Policy Committee meeting underway, markets will also closely watch the central bank's commentary on inflation, growth and interest rates for fresh cues.

(With inputs from ANI)