By Malvika Gurung
Investing.com -- The domestic market indices opened sharply higher on Monday, mirroring strong gains from Asian markets, in line with improved risk sentiment across US stocks as oil prices cooled off in early trade amid evaluations of the economic outlook and interest rate hike expectations.
Global markets also rose, as a recent fall in commodity prices fared well for expectations of a lower aggressive and prolonged rate hike by the US Fed.
Benchmark indices made a gap-up opening on Monday, jumping almost 1.5% each. Nifty50 jumped 1.04% and Sensex climbed 522.5 points or 1% at 11 am, led by gains in IT, metal and auto stocks, at the most. Domestic shares hit an over two-week high in the day.
On the sectoral side, all indices traded in the green, led by Nifty Metal and Nifty IT , while Nifty Bank gained 0.83%. Nifty IT jumped almost 3%, touching its highest level since June 10. The market fear gauge India VIX rose 2.05% to 20.97 levels at the time of writing.
The Bloomberg commodity index plunged 4.3% last week, and market expert VK Vijayakumar believes that if the trend sustains inflation expectations will further come down, enabling central banks to go a bit slow on tightening.
The jury is still out on whether this is a bear market or a corrective phase in a long-term bull market, he added.
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