Extending gains for the second consecutive session on Monday, the benchmark equity indices rose by nearly 1% after the US and Iran announced an interim deal to end their 15-week conflict, paving the way for the reopening of the Strait of Hormuz. The development eased concerns over global energy supplies and boosted risk sentiment across global markets.
The Sensex gained 1,293.12 points, or 1.71%, to touch an intraday high of 76,821.07. However, after paring some gains due to profit booking at higher levels, it ended the session at 76,264.33, up 736.58 points, or 0.97%. The Nifty surged 388.50 points, or 1.64%, during the day but settled at 23,853.90, up 231 points, or 0.98%.
Over the past two sessions, the Sensex and Nifty have gained 3.30% and 2.99%, respectively.
Investors’ wealth increased by Rs 18.15 lakh crore over the past two sessions, including Rs 8.50 lakh crore on Monday alone.
“Indian equities extended their gains on Monday as improving global risk sentiment and a sharp correction in crude oil prices boosted investor confidence,” said Siddhartha Khemka, Head of Research, Wealth Management, at Motilal Oswal Financial Services. Brent crude prices slipped 5.51% to $82.5 per barrel.
“With the US-Iran peace agreement, one major global uncertainty has receded, which is likely to further strengthen investor sentiment,” said Rajesh Palviya, Head of Research at Axis Direct.
Going forward, markets will closely monitor the progress of the monsoon season and any potential impact from El Niño conditions, along with the upcoming quarterly earnings season, which will provide clearer direction on corporate profitability and growth trends, Palviya added.
Market breadth remained firmly positive, with 3,086 gainers against 1,323 losers on the BSE. The broader BSE MidCap and BSE SmallCap indices advanced 1.62% and 1.46%, respectively. Realty, consumer durables, auto, metal, and oil & gas stocks emerged as the top sectoral gainers, while pharma and healthcare were the only sectors to end in the red.
Among Sensex constituents, Trent, InterGlobe Aviation (IndiGo), Bajaj Finserv, UltraTech Cement, and Eternal were the top gainers, rising by up to 5.35%.
Foreign portfolio investors turned net buyers for the first time in 12 sessions, purchasing shares worth Rs 200.05 crore ($21.1 million), while domestic institutional investors bought shares worth Rs 3,189.26 crore, according to provisional BSE data.