Indian equity benchmarks snapped their five-session losing streak on Monday, with Sensex jumping 776.01 points, or 1.02%, to close at 76,835.78, while Nifty gained 228.50 points, or 0.96%, to settle at 23,995.95. According to Outlook Business, the rally was driven by falling crude oil prices, strong buying in IT stocks and firm global cues, providing significant relief to markets after recent volatility. Market breadth remained positive with 2,646 shares advancing, 1,530 declining and 176 remaining unchanged, indicating broad-based participation in the recovery. Eternal, InterGlobe Aviation, Infosys, Bajaj Finance and Shriram Finance were among the biggest gainers on the Nifty, while ONGC, Cipla, HDFC Life, HDFC Bank and Dr Reddy's Laboratories were among the major losers. The Nifty Midcap 100 gained 1% and Nifty Smallcap 100 advanced 1.3%, with broader markets participating in the rally.
IT shares emerged as the biggest contributors to the market recovery, with Nifty IT climbing 2.3%, as reported by Outlook Business. Infosys gained more than 3% after Jefferies upgraded the sector to 'Neutral' from 'Underweight', continuing the strong momentum from previous sessions. Nifty Media index emerged as the top sectoral performer with a gain of 2.4%, while Nifty Realty advanced 2.2% and Nifty Auto rose 1.6%. Nifty Pharma gained 1.5%, Nifty FMCG rose 1% and Nifty Bank advanced 0.7%, with Nifty Infrastructure, Metal, Consumer Durables, Private Bank and PSU Bank also ending higher. On the Sensex, BEL, Power Grid Corp, NTPC, SBI, HDFC Bank, and Bharti Airtel were the major laggards, falling up to 3.5%, while Tech Mahindra, Infosys, HCL Tech, and Eternal gained up to 3%. The IT sector's strong performance was particularly notable, with the sector rising 3.6% and bucking a wider Asian technology selloff driven by concerns over the AI boom's hefty funding needs.
Brent crude fell 4% to $92.84 per barrel after Iran said on Sunday that it would halt its attacks as long as the United States did the same, as reported by Outlook Business. This sharp decline provided significant relief to Indian equities after elevated oil prices had weighed heavily on the market in recent sessions. The rupee also strengthened sharply, ending 68 paise higher at 95.89 against the US dollar compared with Friday's close of 96.57. Vinod Nair, Head of Research at Geojit Investments Limited, said a pause in strikes in West Asia had eased concerns over rising import costs and inflation, triggering a relief rally in the market. The decline in crude prices provided relief to Indian equities after elevated oil prices had weighed heavily on the market in recent sessions, with lower crude prices easing concerns around inflation, import costs and pressure on corporate margins for India, one of the world's largest crude oil importers.
Firm global cues further supported domestic sentiment, with Asian markets including Japan's Nikkei 225, China's Shanghai Composite and Hong Kong's Hang Seng trading higher, according to Outlook Business. US stock futures indicated a positive opening on Wall Street, improving risk appetite ahead of a packed week that includes major corporate earnings, key economic data and the US Federal Reserve's policy decision. Investors are now turning their attention to key central bank policy meetings this week, with expectations remaining that the US Federal Reserve will leave interest rates unchanged, though the probability of a 25-basis-point rate hike has risen to 36.3% from 12.8% a week earlier, according to CME FedWatch data cited by Reuters. The upcoming meetings of the US Federal Reserve, Bank of England and Bank of Japan could provide greater flexibility to maintain the status quo on interest rates.
According to technical analysis from Kotak News Desk, the Nifty has closed back above its 50-day exponential moving average (EMA), an encouraging sign after Monday's recovery. The next hurdle remains the 24,000 mark, with a sustained move above this level potentially strengthening the recovery towards 24,100-24,200. Vinod Nair from Geojit Investments highlighted the sharp correction in Brent crude to $92.84 as a key fundamental positive, along with healthy monsoon progress and strong credit growth running at around 18%. "The sharp correction in crude oil prices, along with a decline in long-term bond yields, has also raised hopes of a durable resolution, supported by signs of long unwinding," Nair said. On the domestic front, a narrowing rainfall deficit is adding comfort to the inflation outlook, supported by better-than-expected Q1 earnings and a positive business outlook.
