Indian shares opened strongly higher on Monday as a sharp decline in international oil prices eased concerns about inflation and the country’s import costs. The BSE Sensex opened 789 points, or approximately 1%, higher at 78,883.34, while the Nifty 50 advanced 189 points to begin the session at 24,572.70.
The initial rise moderated slightly after the opening bell. By 9.49am in Mumbai, the Sensex was up 0.66% at 78,613.05, while the Nifty had gained 0.67% to reach 24,546.80.
The positive opening was broad-based, with 14 of the market’s 16 major sector indexes advancing. Small-cap shares gained approximately 1%, while the mid-cap index rose by around 0.6%.
Oil retreat provides immediate support
Brent crude fell by more than 5% to approximately $83.40 per barrel after American President Donald Trump indicated that talks with Iran would take place on Monday.
Trump had earlier suspended a planned military attack in the hope that negotiations could produce an agreement and reopen the Strait of Hormuz. The decline in oil prices reduced fears of a further energy shock.
India imports most of the oil it consumes, making the economy particularly sensitive to changes in global crude prices. Lower prices can reduce the trade deficit, ease pressure on inflation and improve earnings expectations for companies exposed to transport, manufacturing and consumer demand.
The Indian rupee also strengthened to around 95.13 against the US dollar, its highest level in nearly a month.
Consumer and financial shares advance
ITC gained approximately 3.8%, helping the consumer goods index rise by around 1.6%. Investors focused on stronger-than-expected cigarette volumes despite the company reporting a decline in quarterly profit.
Divi’s Laboratories advanced by around 3.2% following an increase in quarterly earnings. Urban Company surged by approximately 16% after reporting a 44% increase in first-quarter revenue.
Financial shares, which carry substantial weight in India’s benchmark indexes, gained approximately 1%. Bajaj Finance and Bajaj Finserv both rose by around 3% following their financial results.
The advances were supported by corporate earnings that have so far avoided major disappointments. Stronger automobile sales, credit growth, property activity and electricity demand have also reinforced confidence in domestic economic conditions.
Zee Entertainment was a prominent exception, falling more than 11% after the market regulator fined the company and senior executives. The regulator also barred chief executive Punit Goenka and founder Subhash Chandra from participating in the securities market for one year.
Investors turn towards central bank decision
The positive opening begins an important week for Indian markets, with investors awaiting the Reserve Bank of India’s next monetary policy decision.
Lower oil prices provide the central bank with some protection against imported inflation, although policymakers are expected to remain cautious given geopolitical uncertainty.
New market procedures also took effect on Monday, including changes to closing-price determination and extended trading for equity derivatives. The adjustments are intended to improve transparency and price discovery during the final minutes of the session.
For the opening, however, oil dominated investor attention. Its retreat gave Mumbai equities, the rupee and interest-rate expectations an immediate lift.
Newshub Editorial in Asia – 3 August 2026
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