Indian equity benchmarks ended higher on Monday after a volatile session, with NSE Nifty50 closing 0.80% higher at 24,100 and BSE Sensex rallying 600+ points to settle above 77,300, snapping their three-day losing streak. According to Live Mint, the rally was largely driven by a recovery in technology stocks, while solid gains in pharma and consumer goods counters further supported the upmove. The broader markets significantly outperformed benchmarks, with Nifty Midcap 100 and Nifty Smallcap 100 indices climbing over 1.5%, indicating strong participation across market segments.
Markets found strong support from improved global cues and optimism around potential diplomatic progress, with all sectoral indices ending in the green according to Live Mint. Nifty Pharma emerged as the top gainer with a rise of 2.62%, while Nifty Consumer Durables posted a strong gain of 2.53%. Other indices including Nifty Realty, Nifty Media, Nifty IT, and Nifty Metal closed with gains of more than 1.8%. The positive sentiment was driven by a rebound in beaten-down heavyweights across sectors, particularly Reliance, alongside positive developments such as sharp rallies in pharma majors following global acquisition news. However, gains were capped by elevated crude oil prices and macro concerns, with India VIX, a measure of market volatility, remaining elevated.
Investor sentiment remained closely tied to developments in West Asia, particularly the evolving US-Iran situation and its impact on energy markets. While hopes of de-escalation supported risk appetite, uncertainty around the outcome of negotiations kept volatility elevated throughout the session. Iran reportedly submitted a new proposal to the US through Pakistani mediators, focusing on resolving the Strait of Hormuz crisis and lifting the US blockade. The proposal suggests extending a ceasefire or agreeing on a permanent end to hostilities. Meanwhile, benchmark Brent crude futures rose around 2% to touch a three-week high of $107.97 a barrel as stalled U.S.-Iran peace talks prolonged the disruption in Middle East energy exports. While a ceasefire has largely halted active fighting in the war triggered by U.S.-Israeli strikes on Iran two months ago, markets remain focused on the still-shuttered Strait of Hormuz, through which global oil and gas shipments continue to face severe restrictions.
Market breadth was exceptionally strong with around 2,513 stocks advancing on NSE while only 519 declined and 80 remained unchanged, indicating broad-based participation in the rally. Cohance Lifesciences led the list of top gainers, locked at its 20% upper circuit at ₹432 apiece after the company appointed Umang Vohra as Group CEO, effective May 20. Other major gainers included Sun Pharmaceutical Industries which climbed 7% after announcing the acquisition of U.S.-listed Organon in a deal valued at roughly $11.8 billion. Mahindra & Mahindra shares closed 7.9% higher at ₹3,173 apiece reacting to strong March quarter earnings, while Varun Beverages settled 5.8% higher after its results. Suzlon Energy saw renewed buying, with the stock surging 5.6% to ₹56.9 apiece, and Ather Energy zoomed 6.6% after a two-day slide. Despite the positive market sentiment, there are still concerns over high oil prices and continued foreign investor outflows.
Markets are expected to remain volatile and news-driven in the near term, with key factors to watch including developments in US-Iran negotiations, movements in crude oil prices, and ongoing Q4 earnings announcements. As reported by Live Mint, Ajit Mishra from Religare Broking noted that the upmove was primarily driven by a rebound in beaten-down heavyweights across sectors, particularly Reliance, along with positive developments such as sharp rallies in pharma majors following global acquisition news. He emphasized that optimism around potential progress in US–Iran negotiations supported global sentiment, even as crude oil prices remained elevated. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, advised investors to wait for clarity on geopolitical developments before making decisions. He said despite macro threats from the energy crisis, India's growth momentum is resilient and optimistic as indicated by rising private capex numbers.
