Stock markets rebound in early trade as crude oil prices drop sharply
Indian stock market indices Sensex and Nifty rebounded in early trade on July 27, 2026, driven by a sharp decline in global crude oil prices. The drop in oil costs follows a de-escalation of military tensions between the U.S. and Iran, which has improved investor sentiment regarding inflation and the rupee.
Why it matters
Lower crude oil prices are critical for India's economy as they reduce inflationary pressure and improve the current account balance, directly impacting the stability of the rupee and corporate profitability.
Market benchmark indices Sensex and Nifty rebounded in early trade on Monday (July 27, 2026) following a sharp decline in crude oil prices amid easing tensions in the West Asia.
The 30-share BSE Sensex jumped 566 points to 76,608.66 in early trade. The 50-share NSE Nifty surged 153.60 points to 23,923.30.
"Market sentiment has improved meaningfully over the weekend after the U.S. and Iran paused military action, easing fears of an immediate supply disruption. Brent crude has corrected sharply, offering a significant tailwind for India through lower inflation expectations, an improved current account outlook and reduced pressure on the rupee," Rajesh Palviya, Head of Research, Axis Direct, said.
From the Sensex pack, InterGlobe Aviation, Infosys, Eternal, Asian Paints, Bajaj Finance and Bajaj Finance were among the major gainers.
Bharti Airtel and ICICI Bank were the laggards.
Brent crude, the global oil benchmark, tanked 4% lower at $92.84 per barrel.
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