Indian benchmark equity indices staged a strong recovery on Monday, ending nearly one per cent higher and snapping a five-session losing streak, as easing geopolitical tensions in West Asia and a decline in global crude oil prices boosted investor sentiment. Broad-based buying across sectors, supported by favourable global cues and renewed interest in heavyweight stocks, helped the markets register a robust rally.
The rally came after reports of easing tensions between the United States and Iran, which led to a softening in international crude oil prices. Lower oil prices are generally viewed as positive for India, one of the world's largest crude oil importers, as they help ease inflationary pressures, reduce the import bill, and improve the country's macroeconomic outlook.
At the close of trade, the BSE Sensex surged 776.01 points, or 1.02 per cent, to settle at 76,835.78. The NSE Nifty 50 also ended firmly in positive territory, gaining 228.50 points, or 0.96 per cent, to close at 23,995.95. The gains marked the first positive session for the benchmark indices after five consecutive days of declines.
Buying interest was visible across the broader market, with all major sectoral indices finishing in the green. Information technology stocks led the rally, with the Nifty IT index rising 2.34 per cent. Realty stocks also witnessed strong buying, as the Nifty Realty index advanced 2.28 per cent. Financials, consumer stocks, and select industrial counters also contributed significantly to the day's gains.
Market participants attributed the rally to improving global sentiment, easing volatility, and value buying after the recent correction in domestic equities. Investors also took comfort from the decline in crude oil prices, which strengthened expectations of lower input costs for businesses and improved prospects for economic growth.
During the trading session, Brent crude oil was quoted at around USD 87.72 per barrel, while West Texas Intermediate (WTI) crude traded near USD 82.12 per barrel. Gold was trading at approximately USD 4,098.02 at the time of reporting.
Among the Sensex constituents, Eternal, IndiGo, Bajaj Finance, Asian Paints, Mahindra & Mahindra, NTPC, Titan, ICICI Bank, Bharti Airtel, Bharat Electronics (BEL), Reliance Industries, Adani Ports, Kotak Mahindra Bank, ITC, State Bank of India, Larsen & Toubro, Maruti Suzuki, and Trent emerged as the top gainers. On the other hand, HDFC Bank, Power Grid Corporation, and Axis Bank were among the few stocks that ended the session in negative territory.
Commenting on the market performance, Riyank Arora, Associate Vice President – HNI & Derivatives at Hedged.in, said Indian equity markets witnessed a strong rebound as broad-based buying across sectors lifted overall sentiment. He noted that positive global cues, easing volatility, and renewed buying in heavyweight stocks played a key role in helping the markets recover sharply.
Arora also said the day's rally had strengthened the technical outlook for the broader market. According to him, both benchmark indices have reclaimed important psychological levels and are displaying bullish chart patterns supported by healthy buying momentum. He added that as long as key support levels remain intact, the short-term trend is expected to stay positive.
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He advised traders and investors to adopt a "buy on dips" strategy in fundamentally strong stocks while maintaining disciplined risk management amid continued market volatility.
Market analyst Vipin Dixena also described Monday's gains as a strong relief rally after several sessions of weakness. He said easing geopolitical tensions in West Asia and the decline in crude oil prices significantly improved investor confidence, leading to broad-based buying across sectors.
According to Dixena, the rally was driven by strong participation in information technology, financial services, and select consumption stocks, reflecting renewed optimism among investors. He added that the recovery suggests investors are once again focusing on underlying economic fundamentals and corporate earnings after recent market uncertainty.
Despite Monday's sharp rebound, market experts cautioned that investors should continue to monitor global geopolitical developments, crude oil prices, inflation trends, and corporate earnings, as these factors are likely to influence market direction in the coming sessions.
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