Mumbai | Stock market benchmark indices Sensex and Nifty surged in early deals on Monday following a sharp decline in crude oil prices amid easing geopolitical tensions.

Foreign fund inflows also added to markets' optimism during the initial trade.

The 30-share BSE Sensex jumped 470.06 points to 78,564.70 during initial trade. The 50-share NSE Nifty climbed 150 points to 24,532.95.

From the Sensex pack, ITC, Bajaj Finserv, InterGlobe Aviation, Bajaj Finance, Tata Consultancy Services and Infosys were among the major winners.

Sun Pharma and Maruti were the laggards.

Brent crude, the global oil benchmark, traded 4.97 per cent lower at USD 83.56 per barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 277.48 crore on Friday, according to exchange data.

Investor sentiment improved after US President Donald Trump indicated that negotiations with Iran are expected to resume on Monday, reviving hopes of a diplomatic resolution following recent military tensions, Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.

"Global risk sentiment has also been supported by a sharp correction in crude oil prices as easing geopolitical concerns prompted investors to unwind the recent risk premium," he added.

In Asian markets, South Korea's KOSPI, Japan's Nikkei 225 index and Shanghai's SSE Composite index were quoting lower, while Hong Kong's Hang Seng index traded higher.

US markets ended in positive territory on Friday.

"The decline in Brent crude to below USD 84, good progress in monsoon in July and FIIs turning buyers are positive triggers for the market," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

On Friday, the Sensex climbed 166.49 points, or 0.21 per cent, to settle at 78,094.64. The Nifty gained 66.45 points, or 0.27 per cent, to end at 24,383.60.