The markets staged a strong recovery on Monday, with benchmark indices rebounding after five straight sessions of losses. The BSE Sensex surged over 550 points, while the NSE Nifty crossed the 23,900 mark, as investors returned to equities amid easing geopolitical tensions, lower crude oil prices and optimism surrounding the ongoing corporate earnings season.
The rally was largely driven by a sharp decline in global crude oil prices after concerns over tensions in West Asia eased. As India imports nearly 85% of its crude oil requirement, lower oil prices are expected to reduce inflationary pressures, ease the country’s import bill and improve profitability for several sectors. This prompted investors to pick up beaten-down stocks across the market.
Buying was seen across most sectors, including banking, information technology, financial services, FMCG and power, helping both the Sensex and Nifty recover from last week’s steep decline. Positive global cues also supported investor sentiment, encouraging fresh buying in frontline stocks.
Among the biggest gainers on the benchmark indices were Infosys, NTPC, HCLTech, Axis Bank and TCS, all of which posted solid gains during the session. Technology stocks outperformed after improved global sentiment and favourable brokerage views, while banking shares rebounded on value buying after recent weakness.
On the other hand, ONGC and Coal India featured among the top losers as softer crude oil prices weighed on energy-related stocks. A few commodity-linked counters also witnessed profit booking even as the broader market remained firmly positive.
Corporate earnings continued to dictate stock-specific movements. Shares of IDFC First Bank, AU Small Finance Bank, NTPC and Tata Consumer Products remained in focus after reporting their quarterly results. Investors rewarded companies that delivered better-than-expected earnings or maintained a positive business outlook.
Lower crude oil prices also lifted shares of oil marketing companies, airline operators and other businesses that benefit from cheaper fuel costs. Companies in the paint, tyre and chemical sectors gained as falling crude prices are expected to reduce input costs and improve margins.
The Indian rupee strengthened against the US dollar during the session, supported by the decline in oil prices and the positive momentum in domestic equities. A stronger rupee further boosted confidence among investors.
Market participants said the recovery was fuelled by a combination of favourable global developments and bargain hunting after last week’s sharp correction. Investors also drew confidence from steady domestic institutional buying and encouraging corporate earnings, which helped offset concerns over foreign investor outflows.
Analysts, however, cautioned that volatility could continue in the coming days. The direction of crude oil prices, foreign institutional investor (FII) activity, global developments and upcoming quarterly earnings will remain key triggers for the market. They also believe the Nifty could face resistance near the 24,000 level, making it an important zone to watch.
Last week, Indian equities had come under heavy pressure as rising geopolitical tensions pushed Brent crude oil above $100 a barrel, raising fears of higher inflation and slower economic growth. The resulting sell-off led to the Sensex and Nifty registering five consecutive sessions of losses.
Monday’s rebound has restored confidence on Dalal Street, offering investors a much-needed breather after a turbulent week. While the recovery reflects improving global sentiment, market experts believe sustained gains will depend on stability in crude oil prices, strong corporate earnings and continued domestic buying in the sessions ahead.
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