The Nifty opened with a gap-up but struggled to maintain momentum above the 24,300 mark, eventually settling near its 50-day moving average around 24,110. According to latest reports, the index started the session 66 points higher and extended gains by another 168 points in early trade, but momentum faded quickly with the Nifty reversing sharply within the first half hour and sliding 286 points by noon. By mid-afternoon, both indices had eased from their highs, with the Nifty trading 113.40 points higher, or 0.47 per cent, at 24,110.95 and the Sensex up 334.24 points, or 0.43 per cent, at 77,247.74. Market participants attributed the pullback primarily to profit booking after the initial rally, which had been driven by encouraging April auto sales figures, softer crude oil prices earlier in the day and broadly favourable political signals. The day began on a strong note, with the Sensex jumping nearly 1,000 points to hit an intraday high of 77,910.75, while the Nifty crossed 24,290 levels, but this momentum proved short-lived as investors began booking profits after the sharp rally.
West Bengal's election results have emerged as a significant political shift, with the Bharatiya Janata Party (BJP) leading in 194 of 294 seats against incumbent Trinamool Congress's 83 seats, well past the 148-seat majority threshold. According to ETMarkets.com, markets wasted no time reacting as the Sensex surged nearly 1,000 points in early trade, briefly pushing the Nifty toward 24,300, before gains moderated. Sunny Agrawal, Head of Fundamental Research at SBI Securities, noted that "the market mood is positive as one more state like Bengal, which has got significant growth potential, would now be ruled by BJP." However, analysts emphasize that the impact will be gradual, with Dr. VK Vijayakumar from Geojit Investments warning that "this will be only a very short-term sentimental impact. The real market trend will be guided by crude oil prices." The BJP's expansion into West Bengal is expected to ease the Modi government's path to passing legislation in the Rajya Sabha, potentially having far broader market implications than any state-level spending plan.
Among index heavyweights, Adani Ports, Eicher Motors and Jio Financial Services led the gains, while Kotak Mahindra Bank, Bharti Airtel and Dr Reddy's Laboratories were among the top laggards, as reported by CNBC TV18. Sectorally, most indices ended in the green, with Realty, Metals and Healthcare outperforming, while IT, Media, PSU Banks and Private Banks closed lower. Broader markets mirrored the benchmark performance, with the Nifty Midcap 100 and Smallcap 100 indices gaining 0.63% and 0.7% respectively. The session was marked by sector-specific movements rather than a broad-based rally, with Auto and FMCG posting moderate gains while pressure was visible in other sectors. Among the top gainers, stocks like Adani Ports and Special Economic Zone, Adani Enterprises, Eicher Motors, Reliance Industries, and Jio Financial Services led the rally, while Kotak Mahindra Bank, Bharti Airtel, Dr Reddy's Laboratories, Oil and Natural Gas Corporation, and Tata Consultancy Services dragged the indices lower.
Investor sentiment also remained under pressure due to continued selling by foreign institutional investors, with recent data showing sustained outflows that have weighed on market momentum and limited the upside. According to Geojit Investments, currency movements added to the cautious mood as the Indian rupee weakened sharply, falling 39 paise to close at an all-time low of 95.23 against the US dollar. The rupee's decline was driven by persistent FII outflows, rising crude oil prices, and geopolitical tensions. Forex traders highlighted that Brent crude hovering near $109 per barrel is increasing India's import bill and raising inflation concerns, which could impact corporate margins. Oil-importing economies such as India remain sensitive to fluctuations in global energy prices, with Brent crude prices edging higher during the session, reversing earlier losses and adding to inflationary concerns. The uptick in oil prices, alongside geopolitical uncertainties, contributed to the subdued sentiment in equities.
From a technical perspective, analysts noted signs of resilience despite the volatility. Anand James of Geojit Investments said recent price patterns suggest that bulls are attempting to regain control, although elevated volatility levels may persist in the near term. He indicated that the Nifty could move towards the 25,000–25,600 range, with the immediate trading band seen between 24,050 and 24,350. According to latest technical analysis, the Nifty formed a thin-bodied candle with a long upper wick on the daily chart, indicating consistent selling pressure at higher levels. Immediate resistance is seen at 24,250–24,300 with upside targets at 24,450 and 24,600, while immediate support is positioned at 23,980–23,950. Bank Nifty also showed weakness, facing rejection near the 55,500–55,600 zone, suggesting cautious sentiment in the banking space. The current market setup suggests a "sell on rise" strategy as long as indices struggle to sustain higher levels, while for investors, the broader trend remains cautiously positive.
Despite the volatile session, markets managed to close modestly higher, with the Sensex settling 355.90 points higher at 77,269.40 and the Nifty 50 closing up 121.75 points at 24,119.30. Monday's session added over ₹4 lakh crore to the total market capitalisation of BSE-listed companies, taking it above ₹467 lakh crore, reflecting underlying strength despite sharp intraday swings. However, the sharp intraday reversals serve as a reminder that markets are entering a phase of consolidation. Markets may continue to move higher towards 25,000–25,600 levels, but the journey will not be smooth given the current global and domestic factors. The current market trend reflects a delicate balance, with strong earnings, political clarity, and sectoral growth supporting sentiment on one hand, while global uncertainties, rising crude prices, and currency weakness are capping upside on the other. Market breadth remained strong with 2,138 stocks advancing compared to 1,185 declines, and 153 stocks touched their 52-week highs, indicating sustained participation beyond large-cap stocks. Looking ahead, analysts emphasize that global macro indicators of crude oil, West Asia, and U.S.-Iran diplomacy will remain the primary driver of where Indian equities go from here, even as political developments provide short-term sentiment boosts.
