Ending a three-session losing streak, Indian equity benchmarks closed Monday’s session on a firm footing, with the Nifty 50 decisively reclaiming the 24,000 mark. The rally was driven by broad-based buying across heavyweights, helping the market shrug off lingering global uncertainties and elevated crude oil prices hovering above $106 per barrel.

The BSE Sensex rose 639.42 points, or 0.83%, to settle at 77,303.63, while the Nifty 50 gained 194.75 points, or 0.81%, to end at 24,092.70. The broader markets outperforms the benchmark indices, with the Nifty Midcap and smallcap indices climbing 1.47%, and 1.90%, respectively, reflecting strong participation beyond frontline stocks.

Sectorally, the rally remained broad-based, with all major indices ending in the green. Pharma, consumer durables, realty, media and IT stocks led the gains, rising in the range of 2-3%.

Sun Pharma, RIL, Adani Ports among top gainers

On the BSE Sensex pack, 23 out of 30 stocks ended in positive terrain, led by Sun Pharma, which rallied over 7% after the drug major announced $11.75 billion acquisition of Organon, enhancing its global footprint in women's health and biosimilars.

The second on the list was Reliance Industries, which surged 2.88% after the investors reacted positively to its March quarter earnings reports.

Among others, Adani Ports and Special Economic Zone, Tech Mahindra, Mahindra & Mahindra, NTPC, HCLTech and Tata Consultancy Services advanced over 2% each.

On the downside, Axis Bank was the top loser, declining 3.05%, followed by Bharat Electronics (-2.00%), Trent (-0.90%) and ICICI Bank (-0.85%). Other laggards included Eternal and Hindustan Unilever, which ended marginally lower.

What fuelled rally in the market?

Ajit Mishra, SVP–Research at Religare Broking, said the recovery was led by pharma, realty and IT, while financials remained relatively subdued. The upmove was supported by a rebound in beaten-down heavyweights, particularly Reliance Industries, alongside optimism stemming from global developments, including potential progress in U.S.–Iran negotiations. Gains in pharma stocks following global acquisition activity also aided sentiment, he added.

Aakash Shah, Research Analyst at Choice Equity Broking, said the key highlight of the session was short covering along with value buying after the recent correction, supported by improved global cues and stabilisation in broader markets. Despite earlier selling pressure, today’s recovery indicates that investors are selectively accumulating quality stocks at lower levels, he noted.

Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, said that in a positive macro development, India signed a Free Trade Agreement with New Zealand. The pact is expected to benefit Indian exporters, with all Indian exports to New Zealand receiving duty-free access. New Zealand has also committed to invest $20 billion in India over the next 15 years.

He added that markets are expected to maintain their gradual upmove, supported by hopes of resolution, positive global cues, and sector- or stock-specific news flows driving broader market action. “Renewable energy, metals and mining stocks are likely to remain in focus, while summer-related plays may continue to benefit from demand across air conditioners, fans, cold beverages, packaged water and power equipment,” he said.

Technical outlook

Mishra of Religare Broking highlighted that the Nifty has reclaimed its short-term moving average (20-DEMA) near 23,950. Sustaining above this level could pave the way for a gradual move towards the 24,600–24,800 zone, while a failure to hold may trigger renewed weakness towards 23,500.

According to Bajaj Broking Research, the Nifty formed a bullish candlestick pattern within the previous session’s range, indicating consolidation with emerging buying demand near the 20-day EMA. The index is expected to continue consolidating in the 23,600–24,400 band amid stock-specific action during the ongoing earnings season. A breakout above 24,206 could trigger an upside towards 24,400, while a breach below 23,813 may drag the index towards 23,600.

Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, noted that volatility cooled sharply, with the India VIX declining 6.74%, reflecting improved comfort among market participants.

He added that broader indices such as the Nifty Midcap 100 and Nifty Smallcap 100 continue to trade above key moving averages, which are trending higher, signalling a sustained uptrend.

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