Mumbai, Oct 12: Indian equity markets opened higher on Monday, extending the recovery seen in the previous session as easing crude oil prices and measures announced by the Reserve Bank of India (RBI) to support the rupee improved investor sentiment.
The Nifty 50 rose 0.27 per cent to 22,575.65, while the BSE Sensex advanced 0.21 per cent to 72,630.43 as of 9:20 a.m. IST.
The positive opening followed Friday’s rebound, which brought an end to the Indian stock market’s longest weekly losing streak in 25 years. Investors appeared encouraged by declining oil prices and expectations of reduced energy-related risks after US President Donald Trump proposed an energy ceasefire between Russia and Ukraine.
Market gains were broad-based in early trade, with 11 of the 16 major sectoral indices opening in positive territory. The broader market also showed strength, as small-cap stocks rose 1.1 per cent and mid-cap stocks gained 0.4 per cent.
Crude oil futures traded lower on Monday morning amid hopes that a potential easing of tensions between Russia and Ukraine could reduce concerns over global energy supplies. Lower oil prices are generally favourable for India, a major importer of crude oil, as they can help moderate import costs, ease inflationary pressures and reduce pressure on the country’s external balance.
The RBI’s newly announced measures to support the domestic currency also contributed to market sentiment. Stability in the rupee remains an important factor for investors, particularly amid global uncertainties and foreign investment flows.
Despite the positive start, market participants are likely to remain watchful of geopolitical developments, crude oil movements, currency fluctuations and foreign institutional investor activity. After several weeks of selling pressure, investors will look for sustained buying interest to determine whether the latest rebound can develop into a more durable recovery.
The early gains indicate improving confidence, although the direction of global markets and developments in energy prices are expected to remain important drivers of Indian equities in the near term.