Sensex, Nifty snap five-session losing run; investors add Rs 5.1 lakh crore in wealth

Indian equity benchmarks staged a strong rebound on Monday, snapping a five-session losing streak. The 30-share BSE Sensex pack surged 776.01 points or 1.02 per cent to settle at 76,835.78, while the broader NSE Nifty50 index climbed 228.50 points or 0.96 per cent to close at 23,995.95.

The surge added around Rs 5.10 lakh crore to investor wealth, with the combined market capitalisation (m-cap) of BSE-listed companies rising to Rs 480.80 lakh crore from Rs 475.69 lakh crore in the previous session.

Among the top Sensex gainers were Infosys Ltd, Bajaj Finance Ltd, ICICI Bank Ltd, Mahindra & Mahindra Ltd (M&M), InterGlobe Aviation Ltd (IndiGo's parent), Tata Consultancy Services Ltd (TCS), Sun Pharmaceutical Industries Ltd and Asian Paints Ltd.

Sectoral participation remained positive, with IT, auto, pharma, healthcare, FMCG, media and realty stocks emerging as the top performers.

The broader market also advanced, with Nifty Smallcap100 rising 1.31 per cent and Nifty Midcap100 gaining 1.11 per cent.

Ankur Punj, MD & Business Head at Equirus Wealth, said, "Investors cheered the sharp fall in global crude oil prices, which fuelled a major rally in Indian equities. Recovery in global markets and appreciation in the rupee against the dollar prompted strong investor buying in IT, banking & realty stocks. Also, markets were in a continuous downfall last week and with no major news on the conflict from west Asia over the past few days, buying resumed in beaten down stocks."

Vinod Nair, Head of Research at Geojit Investments, echoed a similar view. "A pause in strikes in West Asia has eased concerns over rising import costs and inflation, triggering a relief rally in markets. The sharp correction in crude oil prices, along with a decline in long-term bond yields, has also raised hopes of a durable resolution, supported by signs of long unwinding," he said.

Nair added, "On the domestic front, a narrowing rainfall deficit is adding comfort to the inflation outlook, supported by better-than-expected Q1 earnings and a positive business outlook."

Oil prices fell sharply after the US and Iran paused strikes over the weekend following two weeks of attacks, raising hopes of a diplomatic solution that would de-escalate the conflict and allow shipping to resume in the Strait of Hormuz.

At last check, Brent crude futures were down $7.86 or 8.12 per cent at $88.92 a barrel, while US West Texas Intermediate crude declined $6.19 or 6.93 per cent to $83.12 a barrel.

Nifty outlook

From a technical perspective, Rupak De, Senior Technical Analyst at LKP Securities, said, "On Tuesday, markets may remain volatile as the NSE F&O contracts expire. If Nifty50 moves and sustains above 24,000, we may witness a continuation of the uptrend towards 24,250–24,300. However, failure to sustain above 24,000 might trigger a correction towards 23,800."