Indian benchmark indices ended higher on Monday, supported by strong buying in banking, financial and automobile stocks after a decline in crude oil prices improved investor sentiment and eased concerns around inflation and India’s import bill.

The Nifty 50 reclaimed the 24,000 mark, while the Sensex closed firmly in the green, led by gains in heavyweight financial counters. Market sentiment improved after Brent crude prices tumbled over 5%, breaking below the psychologically important $100-per-barrel mark amid hopes of progress in US-Iran negotiations that could potentially improve global oil supply. Brent crude futures were last trading near $97.8 a barrel.

Lower crude prices are seen as positive for India, which imports more than 85% of its oil requirements. Softer oil prices reduce pressure on inflation, government finances and interest rates, benefiting rate-sensitive sectors such as banks, NBFCs and automobiles.

The 30-share S&P BSE Sensex ended 1,073.61 (1.42%) up at 76,488.96, while the broader Nifty 50 ended 312.40 (1.32%) up at 24,031.70 on Monday, May 25.

Financials dominate market gains

Financial stocks accounted for a large part of the benchmark rally.

HDFC Bank rose 2.69%, ICICI Bank gained 2.31%, Kotak Mahindra Bank advanced 2.37%, while Axis Bank added 1.99%. State Bank of India climbed 2.43%.

Analysts said the decline in oil prices improved risk appetite and triggered fresh institutional buying in lenders after recent weakness linked to elevated crude prices and foreign investor outflows.

NBFCs also witnessed strong buying interest. Bajaj Finance rose 2.99%, while Shriram Finance gained 2.34%, indicating improved sentiment towards consumption-linked and retail-focused lenders.

Autos, capital goods stocks advance

Automobile stocks gained on expectations that lower fuel prices and easing inflationary pressures could support consumer demand and rural spending.

Eicher Motors emerged as the top Nifty gainer, rising 6.45%, while TVS Motor climbed 2.86%. Mahindra & Mahindra added 2.05%.

Larsen & Toubro gained 2.76% amid continued optimism around infrastructure spending and execution momentum in the engineering and capital goods sector.

Adani Enterprises rose 4.77%, making it one of the top large-cap gainers during the session, as investors continued to accumulate infrastructure and energy-transition-linked plays.

Titan also ended higher, gaining 1.77%, supported by continued buying in discretionary consumption stocks.

Broader markets see selective participation

Broader markets witnessed selective buying across digital, consumption and financial names.

Eternal rose 2.29% amid improved risk appetite for new-age platform companies. Midcap financial and consumption-oriented counters also saw accumulation as traders rotated into higher-beta segments of the market.

However, the rally remained largely concentrated in financials, autos and industrials rather than technology or defensive sectors.

Oil, FMCG and healthcare shares under pressure

On the losing side, ONGC declined 1.76% as the fall in crude oil prices weighed on upstream energy producers.

Defensive sectors underperformed, with FMCG stocks such as Nestle India and Hindustan Unilever ending lower as investors shifted towards cyclical and growth-oriented sectors.

Healthcare stocks also witnessed profit-booking. Max Healthcare was the top Nifty loser, falling 2.21% after recent outperformance in the hospital segment triggered valuation-related concerns.

Metal stocks remained subdued, with Hindalco slipping 0.92% amid persistent concerns over global industrial demand and commodity consumption trends.