Benchmark equity indices rebounded on Monday, with the BSE Sensex gaining 356 points and the NSE Nifty 50 closing above the 24,100 mark, supported by strong buying in blue-chip stocks and state election results aligning with market expectations, which boosted investor sentiment.
The sensex rose by 355.90 points, or 0.46 per cent, to finish at 77,269.40. During intraday trade, it surged as much as 997.25 points, or 1.29 per cent, to touch 77,910.75. Meanwhile, the Nifty advanced 121.75 points, or 0.51 per cent, to close at 24,119.30.
Among the 30 Sensex constituents, major gainers included Adani Ports and Special Economic Zone, Hindustan Unilever, Reliance Industries, Larsen & Toubro, Eternal Ltd, and Maruti Suzuki India.
On the other hand, laggards included Bharti Airtel, Kotak Mahindra Bank, Tata Consultancy Services and ITC Limited. Market experts said sentiment was lifted by favourable election outcomes in West Bengal and stronger-than-expected Q4 earnings, helping investors overlook concerns linked to Middle East tensions. However, intermittent profit booking continued due to uncertainty around the US ‘Project Freedom’ initiative aimed at reopening the Strait of Hormuz.
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According to Vinod Nair, Head of Research at Geojit Financial Services, while the resolution of geopolitical issues may take time, optimism around gradual progress is intact, with crude oil remaining below USD 110 providing short-term relief.
Broader markets also ended higher, with the BSE SmallCap Select index rising 0.79 per cent and the MidCap Select index gaining 0.75 per cent. Sector-wise, BSE Realty, Services, Capital Goods, Industrials, Healthcare, and Utilities advanced more than 1 per cent, while IT and PSU Bank indices were among the major losers.
On the BSE, 2,607 stocks advanced, 1,735 declined, and 216 remained unchanged. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, said markets are likely to maintain a gradual upward trajectory, supported by softer crude oil prices, strong domestic macroeconomic indicators such as record GST collections and healthy auto sales, and political clarity following state election outcomes.
He added that a BJP win in three out of five assembly elections is expected to reinforce political stability and improve sentiment, while strong GST collections and better auto volumes point to resilient demand conditions.
Brent crude, the global oil benchmark, rose 1.48 per cent to USD 109.8 per barrel. In Asia, South Korea’s Kospi and Hong Kong’s Hang Seng closed higher, while Japanese markets were shut for a holiday. European markets were mostly lower, whereas US markets ended higher on Friday.
Hariprasad K, Research Analyst and Founder of Livelong Wealth, said early election trends and easing geopolitical concerns, including signs of progress in US-Iran talks, helped soften crude prices and improve risk appetite globally. Strength in US tech stocks also supported sentiment.
He added that stock-specific gains, particularly in Maruti Suzuki India and Hindustan Unilever, contributed to the rally on the back of strong operational updates. Foreign Institutional Investors (FIIs) sold equities worth ₹8,047.86 crore on Thursday, while Domestic Institutional Investors (DIIs) bought shares worth ₹3,487.10 crore, according to exchange data. Markets were closed on Friday for Maharashtra Day.
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