Stock Market Closes Higher as Cooling Oil Prices Boost Investor Sentiment

NEW DELHI, Sep 21 : Indian equity markets closed higher on Monday, supported by easing crude oil prices and bond yields, which improved risk appetite among investors.

The Sensex gained 564 points, or 0.76 per cent, to close at 74,859, while the Nifty rose 68 points, or 0.29 per cent, to end at 23,414. Market breadth remained mixed, with 1,995 shares advancing against 2,111 declines.

Among sectoral indices, pharma and realty gained more than 1 per cent, while FMCG and consumer durables rose nearly 1 per cent each. Metals declined 0.62 per cent, while infrastructure, IT and PSU banks also ended lower. The Nifty Midcap index slipped 0.29 per cent and the Smallcap index declined 0.15 per cent.

The India VIX fell 1.14 per cent, indicating a decline in market volatility.

The Indian rupee closed at 95.82 against the US dollar, compared with Friday's close of 95.87.

On the Nifty, Bharti Airtel was the biggest loser, declining 3.27 per cent, followed by Adani Ports, which fell 1.95 per cent. Bajaj Finance and Adani Enterprises declined around 1.5 per cent each.

Gold prices remained under mild profit booking as the Dollar Index moved above 100. COMEX gold remained in the $4,250-$4,450 range, while MCX gold traded in the Rs 1,51,000-Rs 1,56,000 range.

Vinod Nair, Head of Research at Geojit Investments Limited, said improving sentiment ahead of the upcoming US-China talks, renewed hopes of diplomatic engagement between the US and Iran at the UN, along with declining oil prices and bond yields, provided relief to investors.

He said easing concerns over inflation and energy costs supported a broad-based recovery across sectors and improved overall market sentiment.

Nair added that the earnings cycle appeared to be turning positive, while relatively attractive valuations in select pockets of the market continued to support a constructive medium-term outlook for equities. However, he noted that geopolitical developments and interest-rate expectations would remain key factors influencing investor behaviour and market direction in the near term.