Indian stock markets are likely to advance today on the back of declining crude prices.

Indian equities marked their closure positively on Monday (August 11) gaining more than 300 points towards the closing session.

Crude oil, which fell to $115.20 on Friday (August 8) because of strong rise in US dollar, helped to cheer the market outlook.

Realty and Banking witnessed heavy buying action, whereas selling was seen in IT and consumer durable sectors.

The Midcap and Smallcap index also traded positively all through the day gaining 1.63% and 1.25% respectively.

Asian stocks also zoomed up on Monday, led by auto manufacturers and financial companies as the drop in commodity prices relieved inflation worries and encouraged earnings outlooks.

The Sensex closed the day after making a gain of 336.10 points at 15,503.92. It also touched an intra-day high of 15,520.71 and an intra-day low of 15,367.97 during the day.

The broad-based NSE Nifty profited 90.90 points to close at 4,620.40 after hitting a high of 4,625.20 and a low of 4,529.35.

Alex Mathew, head - research centre, Geojit Financial Services stated, “As expected the markets bounced back on the back of positive global cues with rate sensitive sectors like realty, construction and banking along with infrastructure and oil stocks leading the rally which took the market above the 4,600 levels. Stocks like Reliance Industries, SBI, ONGC, Maruti, BHEL, L&T, ICICI Bank and Reliance Infra were the front runners. These stocks were moving up on value buying and technical buying support.”

He also said that the cooling of crude and the firm European markets aided the market to remain strong till the end. Above all, Nifty has breached the key resistance of 4,616 and concluded above it.

“If Nifty closes one more day beyond this level then we will see an uptrend towards 5,100. Sustained sell-off in commodity market will help the equities market across the globe except China where inflation recorded at a multi year high. Most of the institutional investors and retailers were busy with Olympics. The buying interest will resume in China may be after few weeks later,” Alex said.

He added that the cooling of crude oil has given a feeling in the minds of the investors that the inflation would be under control in the coming weeks. This hope helped the banking and realty sector stocks to rally with 4.16% and 5.27% gain for the day. These beaten down sectors may outperform the Nifty in the weeks to come.

The IIP data for the month of June is likely to come out on Tuesday, which is likely to be around 4.75% and if it is above 5.25% then the stock market will see large increase.

Oil prices tumbled on Monday, August 11 on worries about retarding worldwide demand and a stronger dollar value. Light, sweet crude for next month delivery declined 75 cents to settle at USD 114.45 per barrel on the New York Mercantile Exchange (NYMEX). Gasoline futures dropped 2.08 cents to settle at USD 2.8666 a gallon. The retail price of a gallon of regular gas stood at USD 3.81. Heating oil futures fell 0.85 cent to settle at USD 3.1195 a gallon at the NYMEX.