Stock markets surge in early trade

Mumbai markets opened strong Monday as BSE Sensex and NSE Nifty surged on easing oil prices and positive global cues. Maruti Suzuki led gains after record April sales, while investors tracked crude trends and global developments

Mumbai: Benchmark indices Sensex and Nifty surged in early trade on Monday amid easing oil prices and improving global sentiment, with Asian markets also trading higher.

The 30-share BSE Sensex jumped 657.80 points to 77,571.30 in early trade. The 50-share NSE Nifty climbed 213.35 points to 24,215.10.

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From the 30-Sensex firms, Maruti surged 4 per cent after the car market leader reported a record total sales of 2,39,646 units in April, a 33.29 per cent year-on-year growth, making a strong start to the new fiscal with its small cars showing robust growth.

Hindustan Unilever, Larsen & Toubro, Adani Ports, Asian Paints and Mahindra & Mahindra were also among the biggest gainers.

Kotak Mahindra Bank, Eternal, Tata Consultancy Services and Titan were the laggards from the pack.

Brent crude, the global oil benchmark, traded 0.27 per cent lower at USD 107.9 per barrel.

“Today’s market action may be unduly influenced by the state election results with focus on West Bengal. But it is important to note that this will be only a very short-term sentimental impact,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

The real market trend will be guided by the crude oil prices, which, in turn, will be decided by the news and happenings in West Asia, he said.

“President Trump’s declaration that the US will help and guide ships through the Strait of Hormuz has brought Brent crude down to around USD 108 levels. Also, there is a latest proposal from Iran to the US delivered through Pakistan,” Vijayakumar added.

In Asian markets, South Korea’s benchmark Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were trading higher.

US markets ended mostly higher on Friday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,047.86 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs), however were buyers as they bought stocks worth Rs 3,487.10 crore.

Stock exchanges were closed on Friday for Maharashtra Day.

On Thursday, the Sensex tumbled 582.86 points or 0.75 per cent to settle at 76,913.50. The Nifty dived 180.10 points or 0.74 per cent to end at 23,997.55.