Sensex surges over 350 points as crude prices drop

MUMBAI (Reuters) - The BSE Sensex and the Nifty rallied on Monday as a drop in global crude prices after Iran's deal with world powers to curb its nuclear programme sparked hopes of reduced inflationary pressures and a narrower current account deficit at home.

Bank shares led the gains on hopes falling inflation would reduce the chances of continued rate hikes from the Reserve Bank of India. ICICI Bank Ltd surged 5.2 percent, while HDFC Bank Ltd rose 2.8 percent.

Shares of state-run oil marketing companies also gained after Brent crude dropped more than $2 a barrel on Monday. Indian Oil Corp gained 2.7 percent, while Hindustan Petroleum Corp surged 5.8 percent.

 

The Nifty was up almost 2 percent as of 3:29 p.m. while the Sensex was 1.9 percent higher. (Reporting by Abhishek Vishnoi; Editing by Anupama Dwivedi)