Indian markets opened on a strongly positive note on Monday, with the Nifty 50 opening 100 points higher at 23,745 and the Sensex soaring over 420 points at the opening, as reported by Upstox. The positive start was led by buying in index heavyweight stocks like HDFC Bank (+0.7%), Infosys (+2.6%), and TCS (+1.7%). 35 out of the 50 stocks in the NIFTY50 index traded in green, with 15 stocks trading in red, indicating broad-based buying across sectors. The opening was significantly stronger than Friday's close of 23,547.75, with the Nifty 50 gaining 206.25 points or 0.88% from the previous session's close.
Technology stocks dominated the Nifty 50 gainers list in Monday's opening session, with Wipro emerging as the top gainer, rising 2.2% to ₹208.13 following its partnership with ServiceNow to implement agentic AI workflows. The IT index (.NIFTYIT) rose 2.7%, significantly outperforming other sectors. Infosys gained 2.6% to ₹1,192.70, TCS rose 1.78% to ₹2,299.10, and Tech Mahindra added 1.9% to ₹1,509.00. Earlier reports from The Hindu BusinessLine had shown Wipro gaining 3.25% to ₹208.13, while Infosys climbed 3.17% to ₹1,196.70 and HCL Technologies added 1.73% to ₹1,185.40. The IT sector's strong performance was supported by positive global cues, with tech resuming its leadership on Wall Street as the S&P 500 and Nasdaq Composite closed at records on Thursday, with the Nasdaq Composite rising 8.4% in May driven by artificial intelligence-related demand.
Beyond IT, the aviation sector led broader market gains, with IndiGo surging 3.9% to ₹4,614.20 against a previous close of ₹4,405.00, according to Upstox. Asian Paints rose 3.7% to ₹2,761.90 from ₹2,671.60. The positive opening came after US markets closed May at record levels, with the Dow Jones Industrial Average crossing 51,000 for the first time, the S&P 500 posting its ninth consecutive winning week with a 5.2% monthly gain, and the Nasdaq surging 8.4% in May, driven by artificial intelligence-related demand. Technology stocks outperformed following strong quarterly results from Dell Technologies and Snowflake, with Dell posting a 32% single-day gain after raising its outlook on AI hardware demand.
A key driver of market sentiment was the rise in crude oil prices, with Brent crude trading near $93 per barrel and US crude around $88–90 per barrel, as reported by The Hindu BusinessLine. Crude oil climbed more than 3% Monday as Israel ordered troops further into Lebanon and ceasefire negotiations showed little sign of progress. The latest military activity in southern Iran came just hours after the Pentagon said Tehran had fired a ballistic missile toward Kuwait and deployed attack drones in and around the Strait of Hormuz. Crude oil climbed more than 3% Monday as geopolitical tensions escalated. Despite the firm opening, market participants remained cautious with the session's backdrop clouded by unresolved US–Iran negotiations, with US President Donald Trump reported to have sought revisions to the proposed agreement. With the uncertainty over the US-Iran deal continuing and Brent trading at about $93, there are no major triggers for the market at the start of this week, said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Market experts remain cautiously optimistic about the prospects for peace in the Middle East and its impact on oil prices. Hiren Dasani, chief investment officer for emerging markets at WhiteOak Capital, noted that "markets are pausing as investors weigh the prospects for peace in the Middle East and the potential ripple effects for oil." Dasani added that "if crude settles around $85-$90 over the next nine months, the impact on corporate earnings should remain manageable and markets need confirmation of that for any sustained upmove from here." The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, stood at approximately 16.18–16.19, having rebounded sharply by 8.03% on Friday after several sessions of decline. Any improvement in global risk appetite or moderation in geopolitical concerns could encourage fresh FII participation and provide support to the market, said Hariprasad K, Founder, Livelong Wealth. All eyes will be on the Reserve Bank of India's monetary policy committee (MPC) meeting to be held from June 3, and the outcome will be on June 05, with expectations that the RBI may leave the key policy rate unchanged at 5.25 per cent and adopt a cautious stance. Investors will also focus on the outcome of the four-day talks between India and US on the interim trade pact, with chief negotiators beginning talks on June 1, 2026, to finalise details of the interim trade pact whose framework was agreed upon in February.
