Sensex, Nifty Gain More as Oil Prices Crash on De-escalation Between US and Iran

Mumbai, July 27: Indian stock benchmarks continued their climb from the opening session on Monday, led by a collapse in crude oil prices after Iran vowed to stop attacks as long as US bombing pause lasts. Brent crude futures were trading at their lowest level in a week on Monday. The benchmark BSE Sensex was at 76,692.48 as of 12:38 pm on Monday, up 632.71 points or
0.83 per cent. The Nifty 50 traded at 23,949.05, up 181.60 points or 0.76 per cent. Stock market gains offered relief after five sessions of losses as lower oil prices and calm in West Asian tensions buoyed sentiment. Buying spread across sectors except oil-linked stocks.

Gainers & Losers 

Eternal (ETERNAL) led the top Nifty gainers, rising 5.57 per cent to Rs 295.60 from its previous close at Rs 280.00. InterGlobe Aviation (INDIGO) added 4.53 per cent to Rs 5,211.00 against Rs 4,985.00. Infosys (INFY) rose 3.73 per cent to Rs 1,079.70 from Rs 1,040.90. Bajaj Finance (BAJFINANCE) advanced 3.15 per cent to Rs 1,044.70 from Rs 1,012.80. Asian Paints (ASIANPAINT) increased 2.79 per cent to Rs 2,711.40 from Rs 2,637.90.  

ONGC (ONGC) slumped 2.94 per cent to Rs 241.44 from Rs 248.76, taking the maximum hit from tumbling crude prices, followed by SBI Life (SBILIFE) dipping 0.83 per cent to Rs 1,843.10 from Rs 1,858.60. Adani Ports (ADANIPORTS) dropped 0.68 per cent to Rs 1,756.30 versus Rs 1,768.30. HDFC Life (HDFCLIFE) shed 0.50 per cent to Rs 552.30 from Rs 555.05. HDFC Bank (HDFCBANK) eased 0.47 per cent to Rs 739.30 against Rs 742.80. 

Broad & Sectoral Markets 

The Nifty Smallcap 50 rallied the most, surging 1.21 per cent, followed by gains in the Nifty Microcap 250 and Nifty Smallcap 100 at 1.19 per cent and 1.18 per cent, respectively. The Nifty Midcap 100 rose 0.98 per cent. Broader markets outperformed their headline benchmarks as smaller stocks rallied faster. By contrast, the Nifty 50 gained 0.82 per cent. The Nifty 200 and Nifty 100 rose 0.88 per cent and 0.84 per cent, respectively.  

The Nifty IT index jumped the most by 2.48 per cent, followed by gains in the Nifty Realty 0.88 per cent and Nifty Media at 1.76 per cent. Oil-linked sectors underperformed with the Nifty Oil & Gas rising just 0.06 per cent, Nifty Energy at 0.10 per cent and Nifty Private Bank 0.25 per cent.  

Iran War 

Iran said it would halt strikes as long as the US bombing pause holds. Iran’s announcement came after 13 nights of airstrikes by the US military on Iran-linked targets, which US President Donald Trump ordered to be paused late on Friday due to dwindling stocks of munitions. Trump also wants to give diplomacy space to work, according to his UN envoy Mike Waltz. Iran officials have sounded sceptical about a meaningful policy shift from Washington and characterised Trump’s move as tactical pause rather than permanent. Markets expect signs of lasting ceasefire as Strait of Hormuz supplies around 20 per cent of global oil consumption.  

Asian Markets 

Asian markets traded mixed-to-firm in Monday morning deals. Australian S&P/ASX All Ordinaries and Japanese Nikkei 225 indexes were higher by 1.37 per cent and 0.50 per cent, respectively. Hong Kong’s Hang Seng and Shanghai Composite bucked Asia’s slip. Indonesia Jakarta Composite, Thailand SET index and Vietnam HNX 30 fell into negative territory.  

US Markets  

US markets ended broadly higher on Friday. The Dow Jones Industrial Average gained 0.46 per cent. The S&P 500 added 0.05 per cent to an all-time high. Nasdaq Composite bucked the trend to dip 0.64 per cent lower. Canada’s S&P/TSX Composite and Mexico’s S&P/BMV IPC advanced.  

Oil Prices 

Oil prices tanked by nearly 5 per cent on Monday as concerns around supply disruptions from Middle East tensions eased after the weekend US bombing pause on Iran. Brent crude futures slumped $4.89 or 5.05 per cent to $91.89 a barrel, dipping below $90 for the first time since Nov 9. US West Texas Intermediate crude oil futures dropped $4.67 or 5.23 per cent to $84.64 a barrel. Both benchmarks fell to their lowest levels since last Friday.  

On the MCX, crude oil futures extended gains after markets opened on Monday. MCX Futures were trading at Rs 79,051.50 per tonne as of 12: 27 pm, up 897.00 or 1.14 per cent on day. Benchmark Brent crude futures settled at $98.70 per barrel on Friday, gaining $2.02 or 2.09 per cent.  

Indian Markets on Monday Morning 

Indian markets started strong on Monday, cutting their losing streak to five sessions. The Sensex rose 588.51 points or 0.77 per cent to 76,648.28 at 9:34 am. The Nifty 50 climbed 166.70 points or 0.70 per cent to 23,934.15. Asian markets continued their wait-and-watch mode even after oil prices crash as Iran vows to stop attacks. All sectoral indices traded in green, tracking overnight plunge in crude prices.  

Sources

• BSE
• NSE