Indian equity markets opened higher on easing crude oil prices

Mumbai, July 27 (SocialNews.XYZ) Domestic equity benchmark indices opened higher on Monday, supported by a sharp decline in crude oil prices.

Sensex started the session 549.21 points or 0.72 per cent higher at 76,608.98, while Nifty gained 160.95 points or 0.68 per cent to 23,928.40.

All sectoral indices traded in positive territory during the opening session.

Nifty MidSmall Financial Services index emerged as the top gainer, rising 1.29 per cent, followed by Nifty IT, which advanced 1.25 per cent. Nifty Media gained 1.06 per cent, while Nifty FMCG rose 1 per cent.

Among other sectors, Nifty Auto climbed 0.83 per cent, Nifty Chemicals added 0.80 per cent, Nifty Private Bank gained 0.80 per cent, Nifty Realty advanced 0.75 per cent, Nifty Metal rose 0.73 per cent and Nifty PSU Bank traded 0.72 per cent higher.

According to market experts, the sharp decline in Brent crude prices from $102 four days ago to around $93 on Monday morning has emerged as a key positive for market sentiment.

"The sharp dip in Brent crude price from $102 four days ago to around $93 this morning is a sentiment positive for the market. If the de-escalation of the West Asia conflict holds and crude price drifts lower, that can sustain a mild rally in the market," they said.

They added that the correction in global chip stocks and concerns surrounding the artificial intelligence (AI) trade could revive foreign portfolio investor (FPI) interest in Indian equities.

International oil benchmark Brent crude fell more than 7 per cent or about $7 to trade around $91 a barrel. US West Texas Intermediate (WTI) crude declined over 7 per cent, shedding around $6.4 to slip below $85 a barrel.

Asian markets traded on a mixed note. Japan's Nikkei was up 0.16 per cent, Hong Kong's Hang Seng gained around 1 per cent, while South Korea's KOSPI fell nearly 1 per cent in early trade.

Source: IANS