Indian stock markets witnessed a strong rally on Monday, with the Sensex surging more than 1,100 points and the Nifty reclaiming the 24,000 mark after reports of a breakthrough peace agreement between the United States and Iran boosted global risk appetite and triggered a sharp fall in crude oil prices.
The positive global cues sparked broad-based buying across sectors, helping investors add several lakh crore rupees to their wealth in a single session. Market participants cheered the prospect of reduced geopolitical tensions in the Middle East, a development that could ensure smoother oil supplies and lower energy costs worldwide.
Among the top gainers were HDFC Bank, Larsen & Toubro, Reliance Industries, Adani Green Energy and InterGlobe Aviation (IndiGo). Banking stocks led the charge as lower crude prices improved the outlook for inflation and interest rates. Infrastructure and capital goods counters also attracted strong buying, while energy-intensive sectors benefited from expectations of lower input costs.
Reliance Industries gained on hopes that softer crude prices would support margins across several of its businesses. Aviation stocks, including IndiGo, rallied sharply as falling jet fuel prices are expected to reduce operating expenses.
On the other hand, some defensive and technology stocks underperformed the broader market. Infosys, Tata Consultancy Services (TCS) and ITC featured among the notable laggards as investors shifted money into cyclical sectors expected to benefit more directly from an improving global environment.
The rally was further supported by a strengthening rupee and easing bond yields, reflecting growing confidence among investors. Midcap and smallcap shares also joined the uptrend, indicating widespread participation in the market rebound.
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