The Indian stock market showed strong recovery on Monday, with the Nifty 50 climbing 228.50 points or 0.96% to close at 23,995.95, ending its five-day losing streak and snapping a five-session decline. The BSE Sensex jumped 776.01 points or 1.02% to settle at 76,835.78, with the index climbing as much as 841.74 points or 1.10% to 76,901.51 during the session. According to CNBC TV18, the index opened 161 points higher and extended gains throughout the session, ending near the day's high at 23,995. The biggest boost to market sentiment came from a sharp fall in crude oil prices, with benchmark Brent crude for September 2026 settlement falling $7.93 or 8.19% to $88.85 a barrel. As per Business Standard, the Indian rupee edged higher against the dollar, hovering at 95.9425 compared with its close of 96.5300 during the previous trading session, while the NSE's India VIX tanked 9.76% to 12.66, indicating reduced market volatility expectations. The sharp gains added more than ₹5 lakh crore to the total market capitalization, pushing it up to ₹481 lakh crore.
The Nifty IT index climbed 2.45% to 29,472.30, marking a significant recovery from recent geopolitical pressures. As reported by Business Standard, the IT sector has soared 3.28% in the two consecutive trading sessions, demonstrating strong investor confidence despite ongoing West Asia tensions. Major IT stocks led the rally with Eternal up 5.61%, Infosys gaining 3.59%, and Bajaj Finance rising 3.57%. Other notable gainers included Oracle Financial Services Software up 3.17%, Mphasis rising 2.81%, Coforge advancing 2.78%, and Tech Mahindra up 2.25%. The market breadth was particularly strong with 2,259 shares rising and 1,071 shares falling on the NSE, while 116 shares remained unchanged. Notable individual performers included Fairchem Organics hitting an upper limit of 5% after reporting a 755.56% YoY surge in standalone profit to ₹10.01 crore and Lodha Developers jumping 5.27% following a 103.36% surge in consolidated net profit to ₹1,372.1 crore. Among Nifty constituents, Eternal, IndiGo and Infosys were the top gainers, while ONGC, HDFC Life and HDFC Bank were the biggest laggards.
The resumption of fighting in West Asia has created significant market pressure, with tensions building since July 10 following the collapse of the fragile ceasefire signed by the US and Iran on June 17. According to Business Standard, geopolitical tensions remained elevated after Ukraine struck an Iranian commercial vessel in the Caspian Sea, prompting Tehran to condemn the attack as a "hostile and criminal act." However, the US paused its nearly two-week run of strikes against Iran for a third consecutive night, raising hopes for a diplomatic resolution that could pave the way for a final settlement of the conflict and restore smooth energy supplies through the Strait of Hormuz. Before Friday, the US military had carried out strikes against Iran for 13 consecutive nights, while Iran carried out retaliatory strikes against Washington's allies in the Middle East, which drove oil prices back to levels above $100 per barrel. As per Business Standard, Brent crude for September 2026 settlement fell $7.93 or 8.19% to $88.85 a barrel, significantly improving investor sentiment across global markets. The rebound came after crude oil prices retreated amid easing geopolitical tensions in West Asia, providing relief to Indian equities after last week's sell-off.
Market analysts are providing optimistic technical outlooks for the Nifty's near-term trajectory. Nagaraj Shetti of HDFC Securities noted that the Nifty has rebounded sharply from the crucial support zone around 23,600 and is now approaching the immediate resistance of 24,000-24,100. According to Shetti, a sustained move above 24,100 could pave the way for a rally towards 24,500 in the near term, while immediate support is placed at 23,800. LKP Securities' Rupak De believes the Nifty has reclaimed its 50-day exponential moving average (EMA), signalling improving momentum. He believes a sustained move above 24,000 could extend the rally towards 24,250-24,300, though failure to hold above that level may lead to a pullback towards 23,800. Nandish Shah of HDFC Securities observed that the Nifty has recovered more than 400 points from Friday's low of 23,606 and reclaimed its 50-day DEMA at 23,979. He added that 23,606 remains a crucial support level as it coincides with the rising trendline connecting the April and June swing lows, with immediate support seen at 23,800, followed by 23,600. Sectoral performance was broadly positive, with all major indices ending in the green, with Media, IT and Realty leading the gains. Broader markets also participated in the rally, with the Nifty Midcap 100 rising 1.1% and the Nifty Smallcap 100 gaining 1.3%. On Tuesday, the market may remain volatile as the NSE F&O contracts expire, with Rupak De noting that if the Nifty moves and sustains above 24,000, we may witness a continuation of the uptrend towards 24,250–24,300.
The Indian rupee registered its best trading session in more than six weeks on Monday, ending 0.7% higher at 96.5625 against the US dollar. This may have been driven by likely intervention from the central bank, in addition to the impact of a plunge in oil prices and triggered stop-losses for long dollar positions. According to Economic Times, Jateen Trivedi, VP Research Analyst at LKP Securities, believes going forward, market participants will closely monitor FII flows, the US Federal Reserve's policy decision, and further developments in the Middle East, as these will be the key drivers for the rupee. Technically, the rupee is expected to trade in the 95.70–96.25 range over the near term. The Bank Nifty underperformed the headline indices on Monday, opening with a gap-up but trading in a narrow 401-point range - its smallest intraday range since May 22 before ending 0.69% higher near the 57,100 mark. According to CNBC TV18, Sudeep Shah of SBI Securities said the 57,500-57,600 zone is likely to act as an immediate resistance, with a decisive breakout above 57,600 potentially triggering fresh buying and lifting the index towards 58,200. Markets are expected to remain volatile on Tuesday due to the expiry of NSE's monthly derivatives contracts, while investors will continue to track geopolitical developments in West Asia and movements in crude oil prices, which remain key drivers for domestic markets.
