Sensex Surges 5% In Four-Day Rally: How Crude Correction And FII Inflows Fuelled Market

Nifty50, the 50-share index of NSE, rallied 370.05 points, or 1.58 per cent, to close at 23,810.85. Meanwhile, in these four sessions, the Sensex gained over 5 per cent or 3,671.82 points, and the Nifty climbed 1,112 points, or 4.89 per cent.

Today’s rally was driven by a sharp correction in crude prices and renewed buying from foreign investors.

Earlier on Monday, Sensex soared 1,233.25 points, or 1.66 per cent, to settle at 75,692.78. The Nifty surged 387.70 points, or 1.68 per cent, to end the session at 23,440.80, continuing the rally for the third consecutive day.

Key Factors Behind Stock Market Rally Today

• The momentum was fueled by optimism about the return of foreign fund inflows. As per exchange data, Foreign Institutional Investors (FIIs) bought equities worth Rs 3,114.68 crore on Monday.
• A sharp decline in crude rates from their recent high gave a boost to investors. Last seen, Brent crude, the global oil benchmark, was trading at a level of $106 per barrel. Earlier last week, the crude rates escalated to over $117 per barrel.
• A broad-based buying sentiment for the past four days fueled the elevation in equity indices amid the Q2 earnings session.

“Indian equities extended their recovery as a sharp decline in crude oil prices, declining US Treasury yields and renewed FII interest eased recent macro pressures. Resilient Q2 earnings further strengthened confidence in the domestic growth outlook, while the return of foreign investors after prolonged selling provided a liquidity boost, driving broader participation led by financials and consumption-oriented sectors,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.

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