Indian equity markets demonstrated strong momentum with the S&P BSE Sensex soaring 736.38 points or 0.97% to 76,264.33 and the Nifty 50 index surging 231 points or 0.98% to 23,853.90 at provisional closing. According to CNBC TV18, the benchmark index gained 231 points to close at 23,853 after opening with a gap-up of 362 points on strong global cues, hitting its intraday high within minutes of the opening bell. However, the momentum faded through the day as profit-booking emerged at higher levels, dragging the index nearly 200 points lower from its peak before settling with healthy gains. Market breadth remained robust with 3,089 shares rising and 1,322 shares falling on the BSE, while 216 shares remained unchanged. The strong rally significantly boosted investor wealth, with the combined market capitalisation of BSE-listed companies rising by nearly ₹8 lakh crore to approximately ₹470 lakh crore. Latest developments show Nifty's decisive breakout above the 23,500 mark has strengthened bullish sentiment, with technical analysts believing the index has established a solid base in the 23,100–23,300 zone. Market experts note that strengthening momentum indicators, positive chart formations, and continued buying interest suggest the benchmark could extend its rally towards the 24,000–24,500 range in the weeks ahead.
Banking stocks surged on Monday, lifting the Nifty Bank index nearly 1,000 points to cross the 57,800 mark, as easing geopolitical tensions and falling oil prices boosted market sentiment. According to The Economic Times, HDFC Bank shares climbed about 3% to ₹1,793.50 apiece, with the stock having gained roughly 7% over the past two trading sessions. IndusInd Bank shares also surged nearly 3%, while Bank of Baroda and Yes Bank shares were up around 2% each. Other major lenders including IDFC First Bank, Punjab National Bank, Canara Bank, Union Bank of India, AU Small Finance Bank, Kotak Mahindra Bank, State Bank of India (SBI), Axis Bank and ICICI Bank gained around 1% each. Federal Bank was the only counter on the index that slipped into the red with marginal losses. From a technical standpoint, momentum indicators have strengthened considerably with the RSI jumping to 51.25 and witnessing a bullish crossover, while the Nifty Put-Call Ratio (PCR) surged to 1.41, its highest level since early January, indicating aggressive put writing activity and strengthening bullish sentiment among option traders. Banks could collectively save nearly ₹4,000 crore annually by mobilising funds through Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits instead of relying on domestic term deposits, according to industry estimates. With the Reserve Bank of India bearing the hedging costs, the FCNR(B) route has become significantly more cost-effective than raising funds through three- and five-year fixed deposits.
The rally was broad-based across sectors, with Realty, Consumer Durables and Auto emerging as the best-performing sectors, while Pharma, Healthcare and Media were the only indices to end in the red, as reported by CNBC TV18. Among heavyweight stocks, Shriram Finance, Trent and HDFC Life were the top contributors to the rally, while NTPC, Bajaj Auto and ONGC ended among the notable laggards. The broader market also participated strongly, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 1.3% and 1.1% respectively. Market sentiment remained upbeat after reports of easing tensions in West Asia and progress towards a ceasefire agreement between the US and Iran. Despite the intraday consolidation, Nifty managed to hold on to key breakout levels, indicating that the broader trend remains positive. India VIX declined sharply by 2.48% to 14.35, indicating improving confidence among market participants and providing a supportive backdrop for equities.
Technical analysts highlight that the Nifty decisively reclaimed its 50-day DEMA, placed near 23,772, during Monday's gap-up opening, reinforcing the positive short-term bias, according to CNBC TV18. Nandish Shah of HDFC Securities expects immediate resistance around 24,100, while the 23,600-23,700 zone should act as support. According to Nilesh Jain of Centrum Finverse, the 24,000 mark remains a crucial psychological hurdle for the index, with Nifty now well positioned for a move towards 24,300 if it manages a decisive breakout above 24,000. He recommends a buy-on-dips approach as long as the index remains above 23,200. Nagaraj Shetti of HDFC Securities believes a sustained move above 24,100 could pave the way for an advance towards 24,500 in the near term, while immediate support is placed at 23,650. Rupak De of LKP Securities noted that the day's consolidation was a natural reaction following the sharp gap-up opening, with the positive undertone likely to remain intact as long as Nifty holds above the 23,800 mark, with potential upside towards the 24,000-24,200 zone. Asian markets advanced on Monday following President Trump's announcement of an agreement to end the war between the US and Iran, with Trump saying late Sunday on social media that the deal with Iran was now complete, with Pakistan Prime Minister Shehbaz Sharif saying an official signing ceremony would take place on Friday in Switzerland. Trump also said he authorized the reopening of the key Strait of Hormuz passageway, sending oil prices tumbling and easing concerns over inflation and India's import bill.
