Reliance, metal stocks power Sensex, Nifty rally; IT stocks decline

Indian equity benchmarks rallied nearly 1.7% on Monday, extending their gains to a third consecutive session, as a sharp surge in Reliance Reliance, metal stocks power Sensex, Nifty rally; IT stocks decline

Indian equity benchmarks rallied nearly 1.7% on Monday, extending their gains to a third consecutive session, as a sharp surge in Reliance Industries and strong buying in metal, oil and gas and consumer durables stocks lifted investor sentiment. However, losses in information technology (IT) and media stocks limited gains in parts of the market.

The Sensex jumped 1,233.25 points, or 1.66%, to close at 75,692.78, while the NSE Nifty 50 advanced 387.70 points, or 1.68%, to settle at 23,440.80. Both benchmarks have gained around 3.3% over the past three trading sessions.

Reliance Industries was the biggest contributor to the rally, with the stock surging 11.6% to ₹1,300, its strongest single-day gain since April 2020. The rally followed the company's better-than-expected September-quarter earnings. The stock also accounted for around half of the Nifty's gains during the session.

Among other major gainers on the Nifty, Tata Steel rose 5.83%, JSW Steel gained 5.13%, while Coal India and Shriram Finance advanced 4.88% each. Jio Financial Services climbed 4.28%, while ONGC added 4.19%.

Oil and gas, metal stocks lead sectoral rally

Sectorally, the Nifty Oil and Gas index led gains, rising 5.95%, followed by the Nifty Metal index, which advanced 3.21%. Consumer Durables gained 2.70%, while Cement and Chemicals rose 2.92% and 1.71%, respectively. The Nifty Auto and PSU Bank indices also ended higher, gaining 1.33% and 1.36%.

The Nifty IT index, however, declined 0.50%, while Media fell 0.76%. Private banks and pharmaceutical stocks also witnessed mild selling pressure, with their respective indices slipping 0.14% and 0.07%.

Infosys was the biggest loser on the Nifty 50, falling 2.03%. ICICI Bank declined 0.76%, while Dr Reddy's Laboratories shed 0.74%.

Broader markets also ended higher, although they underperformed the frontline indices. The Nifty Next 50 gained 1.85%, while the Nifty 500 advanced 1.58%. The Nifty Midcap 100 rose 1.19%, while the Smallcap 100 index added 0.71%.

Easing crude prices support sentiment

Sentiment also received support from a retreat in crude oil prices. Brent crude eased to around $109 per barrel from a six-month high of approximately $118, amid renewed hopes of progress in negotiations to end the US-Israeli war on Iran.

“The slight cooling of Brent crude prices from last week's high of USD 118 to USD 110 now is a relief,” V K Vijayakumar, chief investment strategist at Geojit Investments, said.

Investors also tracked developments around potential tax relief for equity investors following reports that Sebi had recommended scrapping LTCG tax for foreign portfolio investors.