Indian equity markets began the new trading week on a strong positive note, with benchmark indices registering gains of over 1.6 percent on Monday. The BSE Sensex surged 1,233.25 points, or 1.66 per cent, to close at 75,692.78, while the NSE Nifty 50 advanced 387.70 points, or 1.68 percent, to settle at 23,440.80. Both indices ended the session at their highest levels in nearly two months.
The rally was largely driven by strong buying interest in heavyweight stocks, particularly Reliance Industries, whose shares jumped following better-than-expected quarterly earnings. Declining crude oil prices and hopes of progress towards easing geopolitical tensions in the Middle East also helped improve investor sentiment. Energy, metals, textiles, infrastructure, automobile and banking stocks were among the major gainers, while information technology, media and pharmaceutical shares witnessed some weakness. The broader market also participated in the rally, reflecting improved investor confidence.
"The markets ended higher today, buoyed by strong buying in heavyweight stocks, particularly Reliance Industries, which surged more than 9% and lent significant support to the benchmark indices. A sharp pullback in crude oil prices provided an additional tailwind, easing concerns over energy costs and offering some relief on the macroeconomic front," said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm. .
However, he said, sectoral performance remained mixed, although the oil and gas sector emerged as the standout performer, gaining over 5%, while the metal sector advanced by over 3%.
Asian markets witnessed a mixed start to Monday's trading session, although sentiment improved as the day progressed. South Korea's Kospi and China's Shanghai Composite recorded notable gains, while Hong Kong's Hang Seng also traded higher. In contrast, Japan's Nikkei 225, Taiwan's Taiex and Australia's ASX 200 faced some selling pressure during early trading. Concerns over elevated technology stock valuations and uncertainty surrounding global artificial intelligence investments continued to influence investor sentiment.
South Korean markets benefited from gains in major semiconductor companies, while Chinese and Hong Kong equities drew support from expectations of policy measures to strengthen economic growth and market confidence. Lower crude oil prices also provided some relief to Asian economies that depend heavily on energy imports.
Indian markets significantly outperformed several regional peers on Monday, supported by strong corporate earnings, positive domestic sentiment and easing concerns over crude oil prices.
"Technically, the Nifty closed firmly above its 50-day simple moving average (SMA) and approached the 23,500 resistance area. The 23,250–23,350 band should now provide immediate support; holding it could open the way toward 23,600, while a break below 23,250 would weaken the breakout. Bank Nifty closed around 55,000 but continues to lag; a decisive close above 55,150 is required to confirm financial-sector participation," said Hariselvan Radhakrishnan, Founder & CEO at HST Wealth, an equity research analyst firm.
According to Radhakrishnan, the rally could extend if the Nifty establishes 23,500 as a support base and Bank Nifty confirms the move above 55,150. However, a lack of financial-sector participation or a sharp rebound in crude oil prices could limit further upside and keep the index consolidating near resistance, despite continued strength in oil and gas and metal stocks.
Stock analysts also wrote in their reports that the broadly positive movement across major Asian markets later in the morning provided additional support to regional sentiment. Going forward, investors are likely to remain focused on corporate earnings, foreign institutional investor flows, crude oil price movements, geopolitical developments and global technology sector trends, they wrote.
