Indian equities rose for a third straight day, with both benchmark indices Sensex and Nifty closing above the key 35,000 and 10,700 levels buoyed by a sharp decline in global crude oil prices and a continuous recovery in the rupee.
The BSE benchmark Sensex surged about 241 points to end at 35,165.48 and the NSE Nifty gained 84 points to close at 10,688.65.
Among the Sensex constituents, Sun Pharma, Coal India, L&T, Asian Paints and SBI emerged as the top five gainers. Sector-wise, pharma, bank, auto and FMCG led the gains.
A widening of positions by retail investors amid continued buying by domestic institutional investors (DIIs) kept the bullish sentiment intact.
In the Asian markets too, a firming trend was seen today as geopolitical worries eased after the US and North Korean officials met to resume preparations for a summit between the leaders of the two countries.
In yet another positive sign, prices of Brent crude -- an international benchmark for crude oil -- fell further by 1.88 per cent to USD 75 per barrel in global markets.
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On Friday, Brent sank 3 per cent and WTI fell 4 per cent, and in early Asia business they were both down a further 2 per cent.
Further lifting investors' mood, the rupee today strengthened by 49 paise to 67.29 (intra-day) against the dollar at the interbank forex market today.
"Fall in oil price in expectation of more supply from OPEC and improved optimism on US and N. Korea summit influenced the market to rally. On domestic front, 10-year yield inched lower while rupee gained some traction which will give cushion on inflation front and fiscal path," Vinod Nair, Head of Research, Geojit Financial Services Ltd, said.
He said that additionally, market optimism may increase as monsoon is about to hit the southern peninsula regions which will support the consumption led story and rural economy.
Driven by capital goods, oil and gas, PSU and healthare, the flagship Sensex reclaimed the 35,000-mark at the outset to hit a high of 35,240.96 before settling at 35,165.48, up 240.61 points, or 0.69 per cent. It also touched a low of 35,006.50
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