The 30-stock BSE Sensex on Monday recovered losses and jumped by 1.5% or 265.39 points to close at 18,439.38 after a fall in crude oil prices in the international markets due to an expected easing of demand in Japan and no strong protests in the Middle East.
Oil and gas and metals were the highest gainers on Monday. While oil and gas stocks increased by 2.2%, metal stocks rose by 2.0%.
Ajay Parmar, head institutional equities, Emkay Global Financial Services, said, “The impact of physical international events (and not financial events) on stock market is limited on Indian capital markets. Stability in crude prices due to unsuccessful protests in Saudi Arabia and expected reduction in demand of oil by Japan has led to the relative optimism in the stock market.”
By the end of last week it was expected that the earthquake and tsunami in Japan would push the Indian stock markets down. There were also concerns about protest calls in Saudi Arabia on Saturday by Internet community.
The broader Nifty increased by 1.6% or 86.05 basis points to close at 5,531 points.