Sensex, Nifty rise about 1% in early trade on easing oil prices, poll trend optimism

India’s benchmark equity indices opened sharply higher on Monday, climbing about 1% in early trade, buoyed by declining crude oil prices and signs of easing geopolitical tensions in West Asia, alongside early trends from key Assembly elections.

The BSE Sensex jumped 833 points, or 1.08%, to an intraday high of 77,746.79. The NSE Nifty 50 rose 250 points, or 1.03%, to 24,245.85 during morning deals.

Broad-based buying was seen across sectors, with strong gains in auto, realty, metal, FMCG and energy stocks. Sectoral indices, including Nifty Auto, Nifty Realty, Nifty Metal, Nifty FMCG and Nifty Oil & Gas, advanced up to nearly 2%.

However, select heavyweights faced selling pressure. Among the laggards in the Nifty 50 pack were Kotak Mahindra Bank, Dr. Reddy’s Laboratories, TCS, Eternal, ITC and Bharti Airtel.

Investor sentiment was also influenced by geopolitical developments. U.S. President Donald Trump said Washington would move to assist vessels stranded in the Strait of Hormuz, calling it a humanitarian step to support neutral nations amid the ongoing U.S.-Israel tensions with Iran.

Iran indicated that the U.S. had responded to its 14-point peace proposal through Pakistan and that the response was under review, though Trump suggested the proposal may not meet expectations.

Domestically, markets are closely tracking vote counting in Assembly elections across four states and one Union Territory, including Tamil Nadu and West Bengal. Early trends are expected to drive short-term market sentiment.

Analysts said crude oil prices remain a key factor for market direction, given their sensitivity to geopolitical developments. Trump’s remarks on ensuring safe passage through the Strait of Hormuz have already pressured oil prices.

Brent crude futures slipped 66 cents, or 0.61%, to $107.51 per barrel. U.S. West Texas Intermediate crude declined $2.83, or 2.77%, to $99.11 per barrel.

In the broader global context, Asian markets traded firmly higher, with Japan’s Nikkei, Hong Kong’s Hang Seng and South Korea’s KOSPI rising as much as 4%.