Mumbai (Maharashtra) [India], August 3 (ANI): Indian equity markets opened sharply higher on Monday with Sensex soaring over 700 points and Nifty crossing the 24,500 level on easing geopolitical concerns and softer crude oil prices.

Both the benchmark indices opened with a solid gap-up, with Sensex opening at 78,883.34 as against the previous close of 78,094.64 and Nifty opening at 24,572.70 as against the previous close of 24,383.60.

The momentum was also supported by strong July auto sales, renewed foreign portfolio inflows and improving dollar liquidity.

Sensex was trading at around 78,621.23, up 526.59 points or 0.67 per cent, and Nifty was trading at around 24,553.55, up 169.95 points or 0.70 per cent at the time of reporting.

Sectorally, most indices traded in the green with Nifty metal emerging as a top gainer, surging 1.23 per cent. At the same time, all broad market indices traded in the positive territory during the early morning session.

On BSE, Indi Go, Bajaj Finance, ITC, BEL, NTPC, HDFC Bank, Adani Ports, SBI, M&M, TCS, Infosys, Eternal, LT, among others, were the top gainers. Sun Pharma, Maruti and Bharti Airtel were the top losers.

In the commodity market, Brent crude was trading at around USD 83.71 per barrel while crude oil was trading at around USD 79.83 per barrel at the time of reporting. At the same time, gold was trading at around USD 4,062.42.

Domestic auto sales provided a positive cue, with Maruti Suzuki reporting a 34 per cent year-on-year rise in sales, while Mahindra & Mahindra's auto sales increased 26 per cent. Foreign portfolio investors turned buyers in July, recording net equity inflows of more than USD 1.5 billion, marking the first month of positive inflows since February.

Meanwhile, the Reserve Bank of India said USD 40.8 billion has flowed into the country since mid-June through FCNR(B) deposits, overseas foreign currency borrowings and external commercial borrowings, strengthening expectations of higher dollar inflows and providing support to the rupee.

Market and banking expert Ajay Bagga noted, 'The sudden removal of the USD 10-USD 12 geopolitical risk premium on crude oil directly lowers global headline inflation expectations for Q3. For net energy importers across Asia and Europe, this serves as an immediate terms-of-trade relief valve.'

'A sudden realignment in global macro drivers overnight has triggered a broad risk-on pivot across global asset classes. The convergence of renewed US-Iran peace negotiations and a historic, coordinated joint intervention by the US Treasury and the Ministry of Finance (MoF) Japan has altered the cross-asset narrative entering this week,' he said.

As per market analyst Vipin Dixena, 'While the opening is encouraging, I believe today's session will be driven more by stock-specific action than a broad-based rally. Nifty has opened on a firm note and is trading above its opening level, indicating positive momentum.'

'As long as the index sustains above the opening range, the bullish bias is likely to remain intact, with buying interest expected to emerge on dips,' Dixena noted. (ANI)