Falling crude prices help Sensex, Nifty snap five-day losing streak

Benchmark indices gained around 1 per cent as easing geopolitical tensions pulled down crude prices, while the rupee emerged as the best-performing Asian currency

Indian equities rose on Monday, with the benchmark indices snapping their five-day losing streak, as a sharp fall in Brent crude prices boosted investor sentiment.

 

The benchmark Sensex on Monday ended the session at 76,836, a gain of 776 points or 1.02 per cent.

 

The Nifty, meanwhile, ended the session at 23,996, a gain of 229 points or 0.96 per cent. The total market capitalisation (mcap) of BSE-listed firms rose by ₹5 trillion to ₹481 trillion.

 

Brent crude prices declined 5.5 per cent — the biggest fall since May 25, 2026, — and were at $87.3 per barrel. This was after the pause in military action between the United States and Iran reduced fears of an immediate disruption to global energy supplies.

 

 

Lower oil prices are particularly supportive for India because the country depends heavily on imported energy.

 

A sustained fall in crude can ease inflationary pressures, reduce the import bill, improve the current account position, and limit pressure on the rupee.

 

The rupee was the best-performing currency among its Asian peers on Monday, rising 0.71 per cent against the dollar to end the session at 95.89.

 

A pause in military action between the United States and Iran brought relief to global markets after nearly two weeks of escalating strikes. Washington suspended its airstrikes late on Friday, and no further American attacks were reported over the weekend. Iran also held back, indicating that it would stop its attacks as long as the US did the same. 

 

Going forward, investors will continue to closely monitor events in West Asia to assess market trajectories.

 

“Indian equities are witnessing a short-term relief, as de-escalation in West Asia and the resultant fall in crude oil prices provided interim support. Going ahead, geopolitical developments and direction in crude oil prices are likely to be key drivers in the near term,” said Siddhartha Khemka, head of research, Wealth Management, Motilal Oswal Financial Services.

 

Khemka added that the earnings season is expected to drive stock-specific action, alongside increased activity in the primary market.

 

“Investors will closely monitor the US Federal Reserve's (Fed’s) policy decision on Wednesday, followed by Fed Chair's commentary for cues on the future interest rate path,” said Khemka.

 

The market breadth was strong, with 2,720 stocks advancing and 1,638 declining. Foreign portfolio investors (FPIs) remained net sellers of ₹1,688 crore, while domestic institutional investors were net buyers of ₹2,329 crore.

 

Barring two, all Sensex stocks gained. Infosys, which rose 3.6 per cent, was the biggest contributor to Sensex gains, followed by Eternal, which rose 5.6 per cent.

 

Index contributions depend on the weightage of a particular constituent and its movement on a given day.

 

“Going forward, the zone of 24,120-24,150 is expected to act as an immediate hurdle for the index. A decisive move above the 24,150 mark could trigger a fresh upswing, paving the way for a rally towards 24,300. On the downside, the 23,900-23,880 zone remains a crucial support area. As long as the index holds above this support band, the undertone is likely to remain positive,” said Sudeep Shah, head — technical and derivatives research at SBI Securities. 

Crude dips 8% as geopolitical tensions ease 

Oil sank as the US paused daily strikes against Iran and tankers sailed to load at a recently disrupted Kazakh export terminal, easing supply pressures in a market squeezed on multiple fronts. 

Brent crude futures for September fell $7.66, or 8 per cent, to $89.12 per barrel on the Intercontinental Exchange. The West Texas Intermediate (WTI) for the September delivery declined $6.93, or nearly 8 per cent, to $82.38 per barrel. “Crude has fallen sharply, with Brent dropping as much as 7 per cent to below $90, and WTI near $85 per barrel, after the US quietly suspended its strike campaign late on Friday and Iran indicated over the weekend that it would also hold its attacks,” said Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities.

 

Gold rises 0.9%  

Gold rose, after a pause in fighting between the US and Iran eased oil supply risks and inflationary concerns that have threatened tighter monetary policy. 

  Spot gold gained 0.9 per cent to $4,087.59 ​per ounce by 13:43 ​GMT, while US futures for August delivery rose 0.5 per cent to $4,090. Bullion is down by more than a fifth since the US and Israel launched strikes on Iran. Domestic gold prices rose by ₹2,440 to ₹1.49 lakh per 10 grams. Silver climbed ₹5,300 to ₹2.3 lakh per kg.