Sensex jumps 800 points as Nifty nears 23,260 in early trade
Stock markets rallied on Monday due to falling crude oil prices, improving foreign investor sentiment, and a weakening global AI trade.
The BSE Sensex rose 801.87 points, or 1.08 per cent, to 75,261.40, while the NSE Nifty 50 gained 205.95 points, or 0.89 per cent, to 23,259.05 on Monday morning, according to India Today.
The rally was supported by a decline in crude oil prices, with Brent crude falling 3.02 per cent to around $110.01. US West Texas Intermediate crude declined 3.05 per cent to $100.94.
A weakening global artificial intelligence trade also aided the markets after the Nasdaq fell 2.8 per cent on Friday. Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the weakening AI trade was perhaps more important than improving external cues.
Domestic factors contributed to the gains, including Reliance Industries reporting a 40.6 per cent jump in September-quarter net profit. Jio Platforms also reported 13.7 per cent growth in quarterly net profit.
Foreign investor activity showed improvement, with overseas investors buying Rs 3,600 crore worth of Indian shares on Friday. Dr Vijayakumar noted that 17.94 per cent credit growth and robust October GST collections reflected a resilient economy.
Market sentiment was further lifted by expectations of a potential long-term capital gains tax rejig in the upcoming Budget.