MUMBAI–Indian stock markets rallied sharply Monday, with the benchmark Sensex climbing more than 1,200 points and the Nifty closing above 23,440, as declining crude oil prices and optimism surrounding U.S.-Iran negotiations strengthened investor confidence.
The BSE Sensex jumped 1,233.25 points, or 1.66%, to finish at 75,692.78, while the NSE Nifty 50 advanced 387.70 points to close at 23,440.80.
The gains marked the third consecutive session of advances for India’s major stock indexes, supported by favorable global market developments and strong buying in several heavyweight stocks.
Investor sentiment improved as crude oil prices declined amid expectations of progress in diplomatic discussions between Washington and Tehran. Lower energy prices helped ease concerns about inflation and rising costs for Indian businesses.
Reliance Industries contributed significantly to the market’s advance, while shares of Coal India, Tata Steel and JSW Steel were among the leading gainers on the Nifty.
Energy and metal stocks attracted particularly strong buying interest during the session.
The Nifty Oil & Gas and Nifty Metal indexes recorded the strongest sectoral performances, reflecting increased investor interest in companies tied to energy and industrial commodities.
However, the rally was not uniform across the market. Information technology and media stocks remained under pressure, with the Nifty IT and Nifty Media indexes ending the session in negative territory.
Smaller companies also failed to participate in the benchmark indexes’ strong gains.
The Nifty MidCap 100 index declined 1.19%, while the Nifty SmallCap 100 fell 0.71%, indicating that buying activity was concentrated primarily in large-cap stocks.
Market analysts said the Nifty’s close above its 50-day simple moving average represented a positive technical development, with the index approaching a key resistance level near 23,500.
“The 23,250–23,350 band should now provide immediate support; holding it could open the way toward 23,600, while a break below 23,250 would weaken the breakout,” analysts stated.
Foreign investment activity also contributed to improved market sentiment, with analysts pointing to renewed buying by overseas investors amid changes in global investment strategies related to artificial intelligence.
“Foreign investors turning buyers as a global AI rotation also provided support to domestic equities. The rally extended to the broader market, with mid- and small-cap indices also advancing, indicating an improvement in market participation,” market watchers noted.
Meanwhile, the Indian rupee strengthened modestly against the U.S. dollar, gaining approximately 0.12% to trade near 94.90.
The currency benefited from a decline in global crude oil prices, which reduced concerns about India’s energy import costs.
West Texas Intermediate crude fell nearly 3% to approximately $99.70 per barrel, dropping below the psychologically important $100 level. Brent crude also traded below $109 per barrel.
Analysts said the rupee could remain within a trading range of 94.50 to 95.25 against the dollar in the near term.
The combination of lower oil prices, improved global sentiment and buying in major industrial and energy companies helped Indian benchmark indexes post one of their strongest sessions in recent trading. (Source: IANS)
