The Indian stock market ended Monday’s trading session on a positive note, with benchmark indices recovering from intraday volatility to close higher. The BSE Sensex advanced 107.25 points, or 0.13%, to settle at 81,106.65, while the NSE Nifty 50 gained 58.25 points, or 0.23%, to close at 25,044.65, holding above the crucial 25,000 mark.
Both indices fluctuated between gains and losses during the session before recovering towards the closing bell. Buying interest in public sector banks, pharmaceutical companies and select heavyweight stocks helped markets overcome selling pressure in information technology and metal shares.
The gains came amid improving investor sentiment following last week’s strong market rally. Continued foreign institutional investor (FII) inflows and declining crude oil prices also supported domestic equities.
State Bank of India (SBI) emerged as the biggest gainer on the Nifty 50, with its shares climbing 2.56%. Trent followed with a rise of 2.02%, while Nestle India advanced 1.91%. NTPC gained 1.87%, and Larsen & Toubro (L&T) rose 1.82%. HDFC Bank also featured among the leading gainers, advancing around 1.8%.
On the other hand, Tata Steel was the biggest loser on the benchmark index, declining 2.81%. HCL Technologies dropped 2.43%, while UltraTech Cement slipped 1.79%. ITC shares fell 1.64%, followed by Bajaj Finance, which declined 1.56%. Infosys also ended in the red, reflecting continued weakness in the information technology sector.
Banking and pharma stocks support markets
Banking stocks emerged as one of the strongest performers during Monday’s trading session. The Nifty PSU Bank index rallied more than 3%, while the Nifty Bank index advanced approximately 1.5%.
Buying in major public sector lenders, including SBI, Punjab National Bank and Bank of Baroda, supported the banking sector. Private sector lenders such as HDFC Bank and ICICI Bank also contributed to the market’s recovery.
The pharmaceutical sector witnessed strong buying interest, with the Nifty Pharma index gaining around 1.7%. Divi’s Laboratories and Gland Pharma attracted investor attention following their recent performance and quarterly business updates.
However, the information technology sector remained under pressure. The Nifty IT index declined approximately 1.2%, as selling in major technology companies weighed on the sector’s performance. Weakness in IT stocks continued to limit the overall market gains.
Crude oil prices, West Asia developments in focus
Declining international crude oil prices provided another source of support for Indian equities. Brent crude prices fell around 1% to approximately $97 per barrel during the session.
India’s dependence on imported crude oil makes domestic markets particularly sensitive to movements in international energy prices. A sustained decline in crude oil prices could help lower the country’s import expenditure, ease inflationary pressures and reduce input costs for several industries.
Developments in West Asia also remained on investors’ radar. Comments from US President Donald Trump suggesting that fresh military action against Iran was unlikely, as discussions to end the conflict continued, helped ease concerns about potential disruptions to global energy supplies.
Any escalation in geopolitical tensions could push crude oil prices higher and create uncertainty for global financial markets. Investors are therefore closely tracking diplomatic developments and their potential impact on energy supplies.
Foreign investor inflows support market recovery
Foreign institutional investor activity continued to play an important role in determining the direction of domestic equities. Foreign investors purchased Indian shares worth more than $4.1 billion in November up to November 9, marking their strongest monthly inflows since September 2024.
The return of foreign buying has provided support to benchmark indices and contributed to the recent recovery in the Indian stock market. However, investors remain cautious about whether the inflow momentum will continue in the coming sessions.
Broader market indices also ended in positive territory. The Nifty Midcap 100 gained around 0.55%, while the Nifty Smallcap 100 advanced approximately 0.10%.
Despite the gains in benchmark indices, overall market breadth remained negative, indicating that selling pressure continued across a larger number of stocks. Of the 3,698 stocks traded on the NSE, 1,629 advanced, 1,959 declined and 110 remained unchanged.
Meanwhile, the India VIX, which measures expected market volatility, declined around 5.8% to 17.36. The fall indicated some moderation in near-term uncertainty among investors.
Going forward, market participants are likely to monitor global market trends, crude oil movements, foreign institutional investor flows and corporate earnings for further direction. Developments surrounding the West Asia conflict and their implications for global energy prices could also influence investor sentiment.
The Nifty’s ability to sustain levels above 25,000 and the Sensex’s recovery will remain important indicators of market momentum in the coming sessions.