Markets Rebound Strongly: Sensex Soars 776 Points, Nifty Ends Above 23,900

Mumbai: Indian equity markets staged a strong comeback on Monday, ending a five-session losing streak as easing geopolitical tensions and a sharp fall in crude oil prices boosted investor confidence.

The benchmark Sensex rallied 776.29 points (1.02%) to close at 76,835.78, while the Nifty 50 gained 229.40 points (0.96%) to finish at 23,995.95, just shy of the 24,000 mark.

Market sentiment improved after crude oil prices declined following a pause in military strikes between the United States and Iran, easing concerns over a prolonged conflict. Lower oil prices are seen as positive for India, one of the world's largest crude oil importers, as they help reduce inflationary pressures and ease import costs.

Analysts said the Nifty has regained strength, supported by the fall in crude prices.

"If the Nifty sustains above the 24,000 level, the uptrend could continue towards 24,250–24,300. However, if it fails to hold above 24,000, the index may witness a correction towards 23,800," a market expert said.

Among Nifty stocks, Eternal, InterGlobe Aviation, and Infosys emerged as the top gainers, driving the market higher.

The rally was broad-based, with broader indices outperforming the benchmarks. The Nifty MidCap index rose 1.11%, while the Nifty SmallCap index advanced 1.31%.

Most sectoral indices also ended in positive territory. Nifty IT, Nifty Media, and Nifty Realty led the gains during the session. The Nifty Realty, Nifty Pharma, and Nifty Metal indices also snapped their three-day losing streak, contributing to the overall positive momentum.

The Nifty Oil & Gas index, however, lagged behind other sectoral indices despite the broader market rally.

According to market experts, the recovery was supported by improving global sentiment, easing geopolitical tensions, lower crude oil prices, a stronger rupee, gains in information technology stocks, and encouraging corporate earnings.

Meanwhile, the Indian rupee emerged as Asia's best-performing currency, aided by timely intervention from the Reserve Bank of India and policy measures that helped restore foreign investor inflows. Analysts also credited the decline in crude oil prices, a weaker US dollar, and improving global risk appetite for strengthening the domestic currency.

With inputs from IANS