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Indian equities rose as investors welcomed the continued decline in the price of crude oil, the country's main import, while dismissing uncertainties over the election result.
Most global markets have also grown as investors are more optimistic about the outlook. for trading and interest rates after another miserable week in the markets.
The BSE Senbad S & P benchmark rose 1.1% to 35,354, its largest percentage increase in more than three weeks. Nifty50 closed at 10,628.6 points, gaining 102 points, or 0.97% – a record since November 2nd.
The market advanced in the second half of the session, from a drop of 0.2%. Markets were closed Friday as oil prices fell 7%, falling to their lowest level in more than a year. 6.1% Friday at 58.8 dollars a barrel, ending its worst week in almost three years. Brent crude traded at $ 60 a barrel at the time of the Indian market closure, down more than 30% from $ 84 a barrel on October 3rd.
"The fall in the price of oil will help reduce pressure on import bills, the exchange rate of foreign exchange reserves and raw material costs for Indian companies. As a result, even inflation will fall, "said Chokkalingam G, chief executive officer of Equinomics Research & Advisory, adding," If oil prices remain at current levels or fall further, it would help stock markets partially mitigate potential risks. related to general elections. "
Foreign and domestic institutional investors remained on Monday net buyers, the first buying shares worth 627 million rupees and the last investing 3.5 billion rupees
. Fourteen of the 19 sector sub-indices compiled by the ESB grew, driven by the S & P BSE (fast-moving consumer goods) index, which jumped 2.2%.
HDFC Bank and Hindustan Unilever (HUL) gave the largest boost to the benchmark, while Sun Pharmaceutical Industries was the biggest drag.
Hero MotoCorp and HUL were the best performers on the market. the benchmark gaining 5% and 4.2%, respectively.
Bharti Airtel shares climbed 3.4% after Bharti's African unit named eight banks: JPMorgan, Citigroup, Bank of America Merrill Lynch, Absa Group, Barclays Bank PLC, BNP Paribas, Goldman Sachs International and Bank Standard Group Manage its initial sale of the shares.
Experts said investors would closely monitor election results held in five states in November and December, to gauge the country's state of mind in anticipation of the national poll next year. The counting of votes in all States will take place on 11 December.
"The market has regained strength against sustained volatility with positive global signals and improved domestic macros due to the sharp fall in the gross and firming rupee," said Vinod Nair, Geojit Financial Services, Director of Research, added: "However, investors remain cautious because of uncertainties related to the US-China trade war, national elections and deteriorating prospects due to the sharp drop in oil prices."
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