Indian equity markets recovered on Monday, with benchmark indices ending higher amid easing crude oil prices, fresh foreign fund inflows and improved global sentiment driven by optimism surrounding US-Iran diplomatic negotiations.
The 30-share BSE Sensex rose 291.17 points, or 0.38 per cent, to close at 77,094.07. During intraday trade, the index surged as much as 522.66 points, or 0.68 per cent, to touch 77,325.56. The broader NSE Nifty also finished in positive territory, gaining 89.80 points, or 0.37 per cent, to settle at 24,102.90.
Market participants were encouraged by lower crude oil prices and sustained buying interest in heavyweight stocks such as Reliance Industries and HDFC Bank. Analysts also pointed to renewed foreign institutional investor participation as a key factor behind the rebound.
Among the Sensex constituents, Tech Mahindra, Sun Pharma, Reliance Industries, Infosys, Bharat Electronics and Bajaj Finserv emerged as the top gainers. On the other hand, Asian Paints, Titan, Power Grid and Trent ended the session among the major losers.
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In the commodities market, Brent crude, the global oil benchmark, declined 1.66 per cent to USD 79.23 per barrel, providing relief to investors concerned about inflationary pressures and import costs.
According to exchange data, Foreign Institutional Investors (FIIs) remained net buyers, purchasing equities worth Rs 4,859.07 crore on Friday. Across Asia, major markets largely ended on a positive note. South Korea's Kospi, Japan's Nikkei 225 and China's Shanghai SSE Composite closed higher, while Hong Kong's Hang Seng index finished lower.
Ponmudi R, CEO of Enrich Money, said Indian markets tracked gains in regional equities as investor sentiment improved following constructive developments in the first round of US-Iran talks. He noted that the continuation of technical-level discussions during the week has strengthened expectations of further diplomatic progress, supporting market confidence. European markets were trading mostly lower during the day, while US markets remained shut on Friday in observance of the Juneteenth holiday.
In a significant development, the United States and Iran agreed on a roadmap aimed at achieving a comprehensive agreement within 60 days after two days of negotiations at the Swiss resort town of Burgenstock. The announcement was made through a joint statement issued by mediators Pakistan and Qatar.
Vinod Nair, Head of Research at Geojit Investments Limited, said the domestic market traded within a narrow range but maintained a positive bias as investors monitored the progress of the US-Iran negotiations. He added that strong performances from utilities, banking and healthcare stocks helped support overall market sentiment.
The recovery followed a weak session on Friday, when the Sensex had declined 607.08 points, or 0.78 per cent, to close at 76,802.90, while the Nifty dropped 154.90 points, or 0.64 per cent, to finish at 24,013.10.
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