Indian benchmark indices posted strong gains on Monday, August 3, extending their winning streak to a fourth consecutive session.
The rally was primarily driven by a sharp decline in crude oil prices, which has alleviated inflationary concerns and improved the trade balance outlook for the energy-importing economy.
Domestic equities maintained their upward trajectory, with the Nifty reclaiming and sustaining levels above critical technical resistance.
The market move reflects a broader repricing of risk as geopolitical tensions in the Strait of Hormuz appear to be stabilizing.
Earlier this week, Indian benchmarks had already extended gains as crude fell and US-Iran talks progressed, signaling a reduction in immediate shipping disruption fears. The current session’s strength suggests that investors are interpreting the diplomatic developments as a durable de-escalation rather than a temporary pause.
Technical indicators support the bullish sentiment, with the Nifty holding firm above key support levels after a third straight session of gains.
The rally has been broad-based, supported by modest gains across multiple sectors, rather than being concentrated in a single industry.