Oil Drop, FPI Turnaround Fuel Sensex's 800-Point Rally

Indian equities climbed sharply on Monday, with the Sensex rising about 800 points to close above 81,000 and the Nifty 50 reclaiming 24,250. All 13 sectoral indices on the BSE ended in positive territory.

Crude oil fell below $70 a barrel for the first time since December 2021, as demand concerns from China and the U.S. outweighed OPEC+ supply cuts. Lower oil prices directly benefit India, the world's third-largest crude importer, by trimming the import bill and cooling input costs for refiners, paint makers, and airlines. The move was a clear positive for costs and margins across several sectors.

Foreign portfolio investors turned net buyers after weeks of selling. Provisional data showed FPIs bought roughly ₹1,500 crore in equities on Monday, the largest single-day purchase in three weeks. That followed a period in which FPIs had pulled more than ₹30,000 crore from Indian stocks in September, pressured by elevated U.S. bond yields and a stronger dollar. The reversal coincided with the dollar index slipping from recent highs, making emerging-market assets more attractive.

Domestic institutional investors continued their steady buying. Exchange data showed mutual funds and insurers added roughly ₹2,000 crore in equities, absorbing much of the FPI selling in recent weeks and keeping the Nifty from breaking below the 24,000 support level.

FMCG stocks led the gains. Hindustan Unilever and Nestle India each rose more than 2%. The combination of lower crude prices and a pickup in rural demand expectations boosted margins. The Nifty FMCG index climbed 2.3%, its best single-day gain in a month.

Banking stocks followed. HDFC Bank gained 1.8%, and ICICI Bank rose more than 1.5%. The Nifty Bank index added 1.6%, recovering from a three-week low hit on Friday. Traders said the move was partly short-covering ahead of the monthly derivatives expiry on Thursday.

Infosys rose 1.2%, and Wipro climbed 0.9%. The rupee steadied against the dollar, supporting the broader IT sector.

The broader market outperformed the benchmarks. The BSE Midcap index rose 1.8%, while the Smallcap index added 2.1%, suggesting risk appetite extended beyond large caps.

The Nifty faces resistance in the 24,300–350 zone. A close above that level would open the path toward 24,500, the September high. On the downside, 24,000 held as support again, tested twice in the past two weeks and held both times.

Among individual stocks, HDFC Bank carries an Alpha Score of 43 out of 100, a Mixed rating. The rating reflects steady institutional support and the overhang of its merger-related cost structure. Infosys scores 57, a Moderate rating, supported by its deal pipeline and margin stability. Wipro scores 46, also Mixed. The company's turnaround efforts under the new CEO have yet to show consistent revenue acceleration.

The session's breadth was strong. About 2,400 stocks advanced on the BSE against 1,200 declines. No sector lagged by more than 0.3%, a pattern that typically signals conviction rather than a one-off short squeeze. The next scheduled catalyst is the U.S. jobs report on Friday.