Indian benchmark indices Sensex jumped over 600 points to trade above 78,700 level while Nifty 50 gained around 150 points, rising above 24,350 level on Thursday, driven by optimism over easing US-Iran tensions and softer oil prices. According to The Economic Times, the sharp gains added more than ₹2.5 lakh crore to the total market capitalisation of all companies listed on BSE, pulling it up to ₹462 lakh crore. The rally was broad-based across sectors and market segments, with most stocks advancing and volatility easing, though Reliance Industries was among the few laggards. As noted by VK Vijayakumar, Chief Investment Strategist at Geojit Investments, "The message from the crude market and the US stock market is that the West Asian conflict is unlikely to last long. The stock market is discounting an early end to the conflict."
The latest market data reveals exceptional performance in mid and small-cap segments, with the Nifty MidCap index rising 2.20% and the Nifty SmallCap index gaining 2.35%, significantly outpacing the benchmark indices. This shows that investor confidence is spreading beyond just large-cap stocks and into the wider market, indicating a broader-based recovery in market sentiment. The strong participation in mid and small caps suggests that risk appetite is improving across market segments, with investors showing increased willingness to take on higher-risk opportunities. This performance gap with large-caps continues to reflect the selective nature of investor interest, with quality and growth prospects being key differentiators in cyclical sectors.
The latest market data reveals mixed performance within the large-cap universe, with defensive sectors continuing to offer relative stability while cyclical sectors require careful stock selection. According to Mojo Stocks, REC Ltd emerged as the top performer with a notable 4.99% return, benefiting from renewed investor interest in the power finance sector amid improving operational efficiencies. Conversely, Hero MotoCorp lagged with a decline of 1.54%, reflecting sector-specific headwinds in the two-wheeler industry amid rising input costs and subdued demand. The Construction Durable sector emerged as the top gainer, followed by strong performance in IT and media stocks, suggesting that investors are leaning towards growth-oriented sectors amid improving sentiment. Meanwhile, the Nifty PSU Bank index underperformed, indicating that some caution still remains in government-linked banking stocks, while rural and CPSE indices lagged, reflecting selective participation.
Several large-cap stocks have recently seen upgrades in their technical scores, signalling improving momentum for selective opportunities. Notably, Indian Oil Corporation Limited (IOCL) was upgraded from a Hold to a Buy rating, reflecting positive technical signals and potential for near-term upside. Other stocks with improved technical outlooks include Axis Bank, which has moved from mildly bullish to bullish, signalling strengthening momentum in the private banking space. Tata Power Co. and Apollo Hospitals have moved from sideways to mildly bullish and bullish respectively, highlighting selective optimism in power utilities and healthcare services. As reported by Mojo Stocks, the current market environment continues to favour defensive large caps, with Axis Bank and IndusInd Bank exhibiting sideways to mildly bullish trends ahead of their earnings announcements. The technical upgrades provide actionable insights for investors seeking to capitalise on momentum shifts in the large-cap segment.
According to VK Vijayakumar from Geojit Investments, "It has been 47 days since the war began. The Nifty has rallied 12% following the war-led sharp correction. The index is up around 2,000 points from the lows it had touched around March 30." He highlighted that mid and small caps have outperformed the large caps, with the small cap index slightly above pre-war levels and mid cap index only marginally lower by around 0.5%, while Nifty is down by about 3.8% from pre-war levels. The underperformance in large caps can be attributed to strong FII selling seen earlier, and the outperformance of the broader market may continue in the near-term. As noted by Vijayakumar, "Investors should watch the stocks which are hitting 52-week highs even in a weak market. Such stocks reflect fundamental strength and accumulation by smart money." The current rally extends this positive momentum, with Brent crude down to $95 level from the recent peak of $119 providing additional support to market sentiment, though risks remain from rising crude oil prices and global uncertainties that could create volatility in coming weeks.
