Benchmark equity indices rebounded nearly 1% on Monday, snapping a five-session losing streak, as Brent crude prices plunged nearly 10% (about $9) to $87.6 a barrel after the US paused its strikes on Iran. A sharp 67-paise appreciation in the rupee against the US dollar further lifted investor sentiment.
The Sensex surged 776.01 points, or 1.02%, to close at 76,835.78, while the Nifty advanced 228.50 points, or 0.96%, to settle at 23,995.95.
The rally added ₹5.10 lakh crore to investors’ wealth, taking the BSE’s total market capitalisation to ₹480.80 lakh crore.
“Investors cheered the sharp fall in global crude oil prices, triggering a strong rally in Indian equities after five consecutive sessions of decline. Recovery in global markets and the rupee’s appreciation against the dollar also spurred buying in IT, banking and realty stocks,” said Ankur Punj, Managing Director & Business Head, Equirus Wealth.
Markets had remained under pressure through last week, but with no fresh escalation in the West Asia conflict over the past few days, investors returned to beaten-down stocks, Punj added.
“Indian equities are witnessing a short-term relief rally as easing tensions in West Asia and the consequent decline in crude oil prices have provided interim support. Going forward, geopolitical developments and the trajectory of crude prices will remain the key drivers for the market,” said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services.
He added that the Q1FY27 earnings season is gathering momentum and is likely to drive stock-specific action, while heightened activity in the primary market and the US Federal Reserve’s policy decision on Wednesday will also remain in focus.
Market breadth was firmly positive, with 2,779 stocks advancing against 1,579 declining on the BSE. The BSE MidCap and SmallCap indices outperformed the benchmarks, rising 1.15% and 1.31%, respectively.
According to provisional exchange data, foreign portfolio investors sold shares worth ₹1,688.23 crore, while domestic institutional investors bought shares worth ₹2,329.14 crore.
Except for telecom, all sectoral indices ended higher. IT, realty, auto, pharma and healthcare led the gains.
Among Sensex constituents, Eternal, InterGlobe Aviation (IndiGo), Infosys, Bajaj Finance and Asian Paints climbed up to 5.63%, while HDFC Bank, Power Grid and Axis Bank were the only laggards, posting modest declines.