Sensex jumps over 600 points, Nifty nears 24,000 as crude cools; IT stocks lead rally

Indian equity benchmarks kicked off the week on a strong note, with the BSE Sensex rallying over 600 points and the NSE Nifty 50 reclaiming the 23,900 mark, aided by broad-based buying across sectors. Sentiment was buoyed by easing crude oil prices and improving global risk appetite as geopolitical tensions in West Asia showed signs of easing.

In the early trade so far, the BSE Sensex jumped as much as 636 points, or 0.85%, to 76,696, and the NSE Nifty 50 gained 197 points, or 0.82%, to 23,964.50.

The broader market outperformed the frontline indices, reflecting a pickup in investor risk appetite. The Nifty Midcap 100 rose 1.05%, while the Nifty Smallcap 100 advanced 1.12%.

Meanwhile, market volatility eased further, with the India VIX, often referred to as the market's fear gauge, falling 5.66% to 13.24, signalling lower expectations of near-term volatility.

IT stocks lead the charge

Technology stocks emerged as the biggest drivers of Monday's rally, with the Nifty IT index surging 2.28% to top the sectoral gainers. Infosys led the benchmark index with a 3.37% jump, while TCS gained 2.16%, Tech Mahindra rose 1.97%, and HCL Technologies advanced 1.68%, lending strong support to the broader market.

Buying was visible across most sectors, highlighting the breadth of the rally. Besides IT, the Nifty Media index gained 1.64%, followed by FMCG (1.06%), Realty (1.01%), Pharma (0.96%), Healthcare (0.93%), Auto (0.72%), Metal (0.70%), PSU Bank (0.69%), Consumer Durables (0.67%), Private Bank (0.63%), and Financial Services (0.54%). The Nifty Oil & Gas index lagged its peers, inching up just 0.17%.

On the Sensex pack, 29 out of 30 stocks were in green, barring ICICI Bank, which slipped 0.13%.

InterGlobe Aviation (IndiGo) emerged as the biggest gainer, surging 3.57%, followed by Infosys, which jumped 3.37%, and Asian Paints, up 2.69%. Financial heavyweights also attracted buying, with Bajaj Finance advancing 2.29% and Bajaj Finserv adding 1.27%, while IT majors TCS, Tech Mahindra, and HCL Technologies gained up to 2.16%, extending the sector's leadership.

The rally also lifted a host of blue-chip stocks, including Hindustan Unilever, ITC, Maruti Suzuki, Larsen & Toubro, Trent, Tata Steel, NTPC, Mahindra & Mahindra, Kotak Mahindra Bank, Reliance Industries, Bharat Electronics, State Bank of India, Axis Bank, Adani Ports, Titan, HDFC Bank, Sun Pharma, UltraTech Cement, Power Grid, and Bharti Airtel, which rose between 0.04% and 1.27%. ICICI Bank bucked the broader trend, slipping 0.13% to emerge as the lone Nifty loser in early trade.

Retreat in crude prices lifts sentiment

The rally comes as crude oil prices retreated sharply after the U.S. refrained from launching further strikes on Iran for a second consecutive night, raising hopes of a diplomatic resolution to the conflict in West Asia. Brent crude, which briefly crossed the $100-a-barrel mark last week, has since eased to around $88, alleviating concerns over inflation and India's import bill.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the sharp fall in Brent crude—from around $102 four days ago to nearly $93—is a positive development for market sentiment.

"If the de-escalation of the West Asia conflict holds and crude prices continue to drift lower, that can sustain a mild rally in the market," he said. Vijayakumar added that while foreign institutional investor (FII) flows have remained inconsistent this month, India continues to offer a diversified investment landscape that could attract overseas investors as concerns around AI-driven technology trades and semiconductor stocks ease globally.

He also noted that crude oil prices and the progress of the monsoon will remain the key domestic variables influencing market direction in the near term.

Ponmudi R, CEO of Enrich Money, said Indian equities are poised to begin the week on a positive note as investors take comfort from the temporary easing of geopolitical tensions.

"The diplomatic overture has triggered a sharp correction in crude oil prices, helping unwind inflation concerns that had unsettled financial markets in recent weeks," he said, while cautioning that developments in the Middle East will continue to shape investor sentiment and commodity prices.

Going forward, analysts expect markets to closely track the U.S. Federal Reserve's policy decision on Wednesday, followed by second-quarter U.S. GDP data and June PCE inflation figures later in the week. Investors will also monitor crude oil prices, developments on U.S. tariffs, and foreign institutional investor flows for fresh market cues.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)