Benchmark equity indices rose over 1% on Monday, buoyed by reports of a potential ceasefire framework in the Middle East, which helped stabilise crude prices after an initial uptick and improved global risk sentiment.
After opening on a firm note, the Sensex slipped 590 points in the first half to hit an intraday low of 72,728.66. However, it rebounded strongly in the second half, surging 1,478.80 points, or 2.03%, from the day’s low to an intraday high of 74,207.46. It eventually ended the session at 74,106.85, up 787.30 points, or 1.07%, extending gains for the third consecutive session.
The Nifty advanced 255.15 points, or 1.12%, to close at 22,968.25, after swinging over 450 points between its intraday low and high.
Indian equity benchmarks
Indian equity benchmarks were the second-best performers among Asian markets, after South Korea (up 1.36%). Japan and Singapore also ended higher, while Taiwan, China, and Malaysia were among the top losers.
Investor wealth rose by Rs 5.14 lakh crore to Rs 427.51 lakh crore.
“The rebound over the past two sessions is encouraging; however, a decisive cooling-off in crude oil prices and a corresponding decline in India VIX—still at elevated levels—remain critical for a sustained recovery,” said Ajit Mishra, SVP – Research, Religare Broking.
Going ahead, a break above the 23,000 mark could extend the upmove towards the 23,400–23,500 zone, where the short-term moving average (20 DEMA) is placed, Mishra added.
“The markets kicked off the week on a strong note, witnessing a sharp rebound as the Nifty moved past the 22,900 mark and formed a bullish candle with a long lower shadow,” said Nilesh Jain, VP – Head of Technical and Derivative Research at Centrum Finverse.
“The overall structure is gradually turning positive, suggesting a continuation of the upmove towards 23,200, followed by 23,400 levels,” Jain said.
Brent crude oil futures were steady at around $109 per barrel, while the Indian rupee appreciated 0.05% to close at 93.06. The 10-year government bond yield eased by 9 basis points to 7.05%. Foreign portfolio investors sold shares worth Rs 8,167.17 crore ($877.6 million) and domestic institutional investors bought shares worth Rs 8,088.70 crore respectively, as per provisional data by the BSE.
Market breadth remained positive, with 3,204 gainers against 1,152 losers on the BSE.
Barring oil & gas and energy, all sectoral indices ended in the green. Consumer durables, financial services, PSU banks, realty, and private banks were among the top gainers, rising by up to 2.60%.
Trent, Axis Bank, Titan Company, L&T, and UltraTech Cement were the top Sensex gainers, while Reliance Industries, HCL Tech, and Sun Pharma were among the laggards.
HDFC Bank contributed nearly one-third of the Sensex’s total gain (258 points), while Axis Bank, L&T, ICICI Bank, and Bajaj Finance together added 373 points, or 47% of the total rise.