Softening crude oil prices, hopes of a truce in West Asia and good Q1FY27 corporate earnings lifted stocks on Monday driving up equity indices closed higher for ‌a fourth straight session. The broader NSE Nifty 50 ended at a five-month high while the 30-scrip Sensex closed at over a three-month high.

The Nifty gained 390.70 points, or 1.60% to end at 24,774.30, its highest closing level since March 2. The Sensex put on 544.39 or 0.70% to close the session at 78,639.03. During the day, the Sensex surged 800.46 points, or 1 per cent, to 78,895.10.

The Nifty marked its steepest single-day gain since June 15, aided by a sharp last-minute rally of nearly 200 points following the new closing auction mechanism for F&O stocks which kicked off on Monday. Over the past four sessions, the Sensex and Nifty have gained 2.44% and 3.29%, respectively.

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The rally was broad-based with the BSE Midcap and BSE Smallcap indices also advancing by 0.86% and 1.28%, respectively. The breadth was positive with 2,837 gainers against 1,552 losers on the BSE. Investor wealth increased by Rs 4.58 lakh crore, taking the BSE’s total market capitalisation to Rs 490.55 lakh crore.

Foreign Portfolio Investors (FPI) turned buyers in July, purchasing equities worth $2.3 billion (Rs 22,258 crore), marking the biggest monthly inflows in 22 months, data from NSDL shows. Experts believe the Indian markets are now more attractively valued and should continue to attract foreign funds.

Crude oil prices fell to $83-84 levels on Monday on easing geopolitical tensions after US President Donald Trump said talks with Iran would happen on Monday. While the US has put strikes on Iran on hold, Trump, however, declined to set a deadline for an agreement. Lower oil prices will ease concerns over inflation and dollar outflows.

“Investor sentiment improved after crude oil prices declined sharply following renewed optimism over diplomatic talks between the US and Iran. Encouraging quarterly earnings from several companies, resilient auto sales data, and continued strength in the rupee further supported risk appetite,” Ajit Mishra, SVP – Research, Religare Broking, said. Investors remain watchful ahead of the Reserve Bank of India’s monetary policy announcements on August 5 although the consensus view is that the key policy rate will be left unchanged at 5.25%.

IT was the best-performing sector, rising 3.3%, followed by private banks, FMCG, metals and auto. InterGlobe Aviation (IndiGo), TCS, Infosys, Eternal and ITC were the top Sensex gainers, rising by up to 4.22%, while Sun Pharma, Bharti Airtel, Maruti Suzuki, Tata Steel and Mahindra & Mahindra (M&M) were the top laggards, declining by up to 1.98%.