Business · India Bureau
Indian equities surge on crude decline, foreign fund inflows
Benchmark indices delivered strong gains as falling global oil prices and robust foreign investor participation lifted market sentiment. The rupee strengthened while bond yields eased amid the optimistic trading session.
LSN India ·
India's stock markets surged on Monday as a combination of favourable macroeconomic factors and sustained foreign fund flows boosted investor confidence ahead of the festive season.
The NSE Nifty 50 index climbed 2.4 per cent to 24,536.60, while the BSE Sensex gained 2.6 per cent, reflecting broad-based strength across equities. Financial and automobile stocks led the rally, riding on benefits from moderating crude oil prices in international markets, which typically ease inflationary pressures and boost corporate profitability.
Foreign institutional investors remained net buyers, providing crucial liquidity support to Indian equities despite significant selling pressure from domestic investors. Analysts attributed the foreign fund flows to India's relative attractiveness among emerging markets, coupled with the ongoing festive season demand expectations.
On the currency front, the Indian rupee firmed against the US dollar, benefiting from the improved equity flows and sentiment. Bond yields also eased during the session, suggesting expectations of stable interest rate trajectories in the near term.
Market participants remain focused on crude oil price movements and global monetary policy signals as key drivers for the near-term market direction.