Benchmark equity indices BSE Sensex and NSE Nifty 50 rebounded sharply on Monday after an initial dip in early trade, as crude oil prices corrected amid reports of possible ceasefire efforts in the ongoing West Asia conflict. Strong buying in banking and IT stocks, along with a firmer rupee, lifted investor sentiment, traders said.
In a volatile trading session, the 30-share Sensex surged 787.30 points, or 1.07 per cent, to close at 74,106.85. During the day, it had climbed as much as 887.91 points, or 1.21 per cent, to touch 74,207.46.
On the broader market, 3,207 stocks advanced, while 1,147 declined and 190 remained unchanged on the BSE. Meanwhile, the 50-share Nifty gained 255.15 points, or 1.12 per cent, to settle at 22,968.25.
“The rebound was largely driven by reports of a potential ceasefire framework in the Middle East, which helped stabilise crude prices after the initial spike and improved global risk appetite,” said Ajit Mishra, SVP (Research) at Religare Broking Ltd.
Among Sensex constituents, Trent Ltd emerged as the top gainer, rallying 7.89 per cent. Other notable gainers included Axis Bank, Titan Company, Larsen & Toubro, UltraTech Cement and Bajaj Finance.
On the downside, Reliance Industries and Sun Pharmaceutical Industries were among the laggards. Markets opened on a positive note but witnessed profit booking in the first half, creating some intraday pressure. However, strong buying in the latter half pushed indices higher, helping benchmarks end the session on a strong note, said Hitesh Tailor, Technical Research Analyst at Choice Equity Broking Private Limited.
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On the sectoral front, BSE PSU Bank index rose 2.37 per cent, followed by Consumer Durables (2.30 per cent), Private Banks (2.15 per cent), Financial Services (2.12 per cent), BSE Top 10 Banks (2.07 per cent), Bankex (2.03 per cent) and utilities (1.94 per cent). In contrast, energy, and oil and gas stocks underperformed.
Consumer durables stocks led the rally, supported by a strong demand outlook and continued interest in consumption-driven themes. IT stocks also performed well, with the Nifty IT index gaining due to rupee movement and defensive buying amid geopolitical uncertainties, as a weaker currency tends to support export-oriented earnings.
“Domestic equities saw a strong rally as value buying picked up across sectors. Crude prices softened slightly on reports of ceasefire efforts, while encouraging provisional banking data boosted interest in rate-sensitive segments,” said Vinod Nair, Head of Research at Geojit Investments Limited.
He added that overall market sentiment remains cautious due to persistent inflation concerns and potential disruptions to global trade.
Global oil benchmark Brent crude declined 0.71 per cent to USD 108.3 per barrel.
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