The benchmark indices surged nearly 1% on Monday, in line with gains across Asian markets, shrugging off concerns over ongoing geopolitical tensions.
The investor sentiment was further buoyed by encouraging macroeconomic data – wholesale price index inflation fell to a 14-month low of 0.39% in May while the trade deficit narrowed to $21.88 billion from $26.42 billion in April.
Snapping a two-day losing streak, the Sensex jumped 677.55 points, or 0.84%, to close at 81,796.15. The Nifty surged 227.90 points, or 0.92%, to end at 24,946.50. In the previous two sessions, both the indices had declined by up to 1.69%.
Foreign portfolio investors net sold shares worth Rs 2,539.42 crore while the domestic institutional investors bought equities worth Rs 5,780.96 crore, as per provisional data from the BSE.
“The market’s resilience amid lingering geopolitical tensions is encouraging. However, participants should remain cautious and not get carried away by a single-day rebound, especially as the Nifty approaches the upper band of its current consolidation range — the 25,000–25,200 zone,” said Ajit Mishra, SVP – research, Religare Broking.
“Markets are showing resilience in the face of geopolitical heat — thanks to easing inflation, fiscal discipline, and steady institutional support. With the Fed and BoJ meetings ahead, plus trade deal buzz, expect volatility, but also pockets of opportunity,” noted Vikram Kasat, head – advisory, PL Capital.
Among the broader indices, the BSE Midcap outperformed the benchmarks, rising 0.93%, while the BSE Smallcap gained 0.38%. Investor wealth rose by Rs 3.30 lakh crore to Rs 450.52 lakh crore. However, the market breadth was negative, with 2,108 stocks declining versus 1,976 advancing on the BSE.
All the sectoral indices on both the exchanges ended in the green. IT, Teck, oil & gas, realty and services led the gains, rising up to 1.5%.
On the Sensex, 27 out of 30 stocks advanced, while 45 of the 50 Nifty stocks closed in the green. UltraTech Cement, Tech Mahindra, HCL Tech, TCS, and Infosys were the top Sensex gainers, rising up to 2.39%.
In contrast, Tata Motors, Adani Ports and Sun Pharma were the top laggards, falling up to 3.56%. Shares of Tata Motors dropped as much as 5.50% intraday to Rs 672.75 — the steepest fall since April 7 — after its unit, Jaguar Land Rover warned of near-zero free cash flow for the fiscal ending March 2026, as per an investor presentation filed with the stock exchanges by the parent company.