Indian stock markets opened positively on Monday, with the BSE Sensex starting at 77,940.90, up 176.99 points or 0.23%, while the NSE Nifty 50 index opened at 24,306.85, gaining 36 points or 0.15%. This positive opening follows the fourth consecutive session of gains, where the Sensex had closed at 77,502.12, up 0.75% and the Nifty had reached 24,300 level, up 0.71%. The rally was broad-based with 2,536 shares advancing against 1,740 declining on the BSE, while 182 shares remained unchanged. The India VIX dropped 7.21% to 12.29, indicating reduced market volatility expectations. The BSE 150 MidCap Index jumped 0.94% and the BSE 250 SmallCap Index climbed 0.68%, indicating strong participation across market segments.
Among the sectoral indices, Nifty Realty emerged as the top gainer, rising 0.86%, followed by Nifty Metal which advanced 0.39%. Healthcare-related indices also traded in green, with Nifty MidSmall Healthcare gaining 0.32% and Nifty Pharma rising 0.24%. However, most other sectoral indices traded under pressure in early deals. From the Nifty pack, Kotak Mahindra Bank, TCS, Tech Mahindra, Wipro, Infosys, Eicher Motors, IndiGo, Tata Consumer Products, ONGC and ITC were among the top losers. The India VIX dropped 7.21% to 12.29, indicating reduced market volatility expectations.
IT stocks dominated the market rally with Infosys surging 5.65% to ₹1,041 and Tech Mahindra climbing 4.34% to ₹1,421, while Tata Consultancy Services rose 4.32% to ₹2,068 on volumes of nearly 39 lakh shares valued at ₹79,578.60 lakhs. HCL Technologies gained 4.25% to ₹1,078. According to SBI Securities, "IT stocks are relatively outperforming today on the back of short covering, with TCS and Infosys being the top contributors in Nifty." The Nifty IT index climbed 4.37% to 26,965.05, ending its three-session losing streak after slumping 6.51% in the past four consecutive trading sessions. The IT index gained 2% during the session, with the sector's strong performance helping drive the broader market rally. Persistent Systems, Infosys, TCS, HCLTech and Tech Mahindra were among the biggest contributors to the Nifty's gains, as reported by CNBC TV18. Coforge, Mphasis, and LTIMindtree also advanced significantly, with the IT Index registering its biggest intraday gains since May 2025, as reported by ET Now. Zensar Tech, C.E. Info Systems, Exide Industries, Sona BLW Precision, Tata Technologies, Persistent Systems and Apollo Tyres were among the stocks that witnessed strong buying interest from market participants, with Sona BLW Precision, Aegis Logistics, ITD Cementation, Zydus Wellness, Ami Organics, Emmvee Photovoltaic and Inventurus Knowledge hitting their 52-week highs on NSE.
The market rally was primarily driven by heavy rainfall reviving monsoon hopes, with the India Meteorological Department (IMD) placing several cities including Mumbai on red alert over the weekend. After expectations of below-normal rainfall clouded market sentiment earlier, various parts of India saw heavy rainfall over the weekend, providing significant relief to agricultural and economic prospects. The optimism comes as foreign investors turned net buyers, boosting investor confidence and supporting the sustained market momentum. The overall market breadth was positive, as 1,284 stocks advanced on NSE, while 1,125 declined and 167 remained unchanged, indicating broad-based participation across market segments. According to market experts, the revival of the monsoon and FIIs turning net buyers on Friday are positive near-term triggers for the market.
On the commodities front, international benchmark Brent crude declined 0.76% to $71.55 per barrel, while U.S. West Texas Intermediate (WTI) crude fell about 1% to trade below $69 per barrel. In Asia, markets traded mixed, with Japan's Nikkei declining nearly 1% and South Korea's KOSPI falling almost 2%, while Hong Kong's Hang Seng edged higher. The global market cues remained mixed with softer US jobs data boosting sentiment, though cautious sentiment prevailed as investors await greater clarity on the outcome of US-Iran negotiations, with geopolitical developments expected to be the key near-term catalyst. Gift Nifty was trading around 24,407 level, a premium of nearly 142 points from the Nifty futures' previous close, indicating a positive start for the Indian stock market indices. Asian stocks rallied on Friday, led by gains in tech stocks, which saw a much-needed reprieve from the heavy selling of recent weeks. US stock market ended mixed on Thursday, with the Dow posting a record closing high, supported by softer-than-expected US nonfarm payrolls which eased worries about interest rate hikes.
From this week onwards, the market will start responding to the Q1 results which will begin on July 9 with IT heavyweight TCS, as noted by market experts. Q1 results overall are likely to be subdued due to the energy shock and macro headwinds triggered by the conflict in West Asia. In Q1 financials and autobiles are likely to outperform while IT will report subdued results and modest guidance. Financials will report better-than-expected results driven by impressive credit growth of 17%, with NBFCs in gold loan and consumer financing expected to report revenue and profit growth around 20%. In automobiles, commercial vehicles and two-wheelers will report impressive numbers since the Q1 sales in these segments have been better-than-expected. Technical view on Nifty suggests that despite consecutive weeks of gains, Nifty has only reached the April's highest closing figure from where a multi-month downtrend had begun. We will continue to see 23,800 as a strong downside marker while we chase short term upsides with an eye on 24,170. Expect whip saw moves to 24,600, which may not be sustainable initially, however, a close above 24,400 could render the trend stable for a 24,800-25,250 move. Immediate resistance is seen around the 24,400 level, while support is placed in the 24,200-24,100 zone, according to analysts.
