Markets end off highs; Sensex up 356 pts, Nifty at 24,119 as BJP eyes big wins in Bengal, Assam

Indian equity benchmarks ended off their intraday highs on Monday, as early optimism driven by assembly election trends gave way to profit booking and sectoral weakness in the latter half of the session. Sentiment was further dented by continued uncertainty in global energy markets due to the ongoing Middle East conflict, weakness in the rupee, and sustained foreign outflows.

The BSE Sensex surged as much as 997 points, or 1.29%, to hit an intraday high of 77,910.75. However, the index pared more than half of its gains to close at 77,269.40, up 355.90 points, or 0.46%. Similarly, the Nifty 50 climbed 292.65 points to touch a high of 24,290.20, but settled at 24,119, gaining 121.75 points, or 0.51%.

The initial rally was supported by positive global cues and encouraging early trends from assembly election results across key states. However, as the session progressed, investors booked profit at higher levels.

Despite the pullback in benchmark indices, broader markets remained resilient, with the Nifty Midcap 100 and the Nifty Smallcap 100 rising 0.63% and 0.70%, respectively.

By the time of reporting, vote counting trends indicated that the Bharatiya Janata Party (BJP) was on track for a historic win in West Bengal and Assam. In Kerala, the Congress-led United Democratic Front (UDF) maintained a lead, while in Tamil Nadu, actor-turned-politician Vijay-led Tamilaga Vettri Kazhagam (TVK) emerged as a surprise frontrunner, outperforming established parties.

"Investor sentiment remained supported by a favourable election outcome in West Bengal and a better-than-expected Q4 earnings, helping markets look past Middle East-related concerns. However, intermittent profit booking persisted amid uncertainty surrounding the U.S. “Project Freedom” initiative to reopen the Strait of Hormuz,” said Vinod Nair, Head of Research, Geojit Investments.

Volatility cooled slightly, with the India VIX falling 0.86% to 18.30, suggesting relative stability despite intraday swings.

20 out of 30 Sensex pack end in positive terrain

On the BSE Sensex pack, 20 out of 30 stocks ended in positive terrain, led by infrastructure, FMCG, and financial stocks, while IT, telecom, and select consumption names faced selling pressure.

Among the top performers, Adani Ports and Special Economic Zone  led the rally with a sharp 5.3% gain, followed by Hindustan Unilever , which rose 2.6%. Reliance Industries  advanced 2.24%, while engineering major Larsen & Toubro  added 2.18%.

Auto major Maruti Suzuki India  also gained over 2%, alongside financial stocks such as Bajaj Finserv and Bajaj Finance, which rose up to 1.7%. Cement major UltraTech Cement and pharma player Sun Pharmaceutical Industries also traded higher, while banking heavyweight HDFC Bank lent additional support to the indices.

On the flip side, losses were led by telecom major Bharti Airtel, which declined over 3%. Kotak Mahindra Bank fell nearly 3% post Q4 results. IT stocks remained under pressure, with Tata Consultancy Services, Infosys and Tech Mahindra slipping up to 1.8%. Other laggards included InterGlobe Aviation, ITC Limited, and Titan Company, which also ended in the red.

On the sectoral front, the Nifty Realty emerged as the top gainer, rising 2.41%, followed by Nifty Metal (up 1.09%) and Nifty Pharma (up 0.89%). On the other hand, Nifty IT declined 0.95%, while Media and banking indices also ended in the red, weighing on overall market sentiment.

Going forward, the market is likely to remain range-bound with a “buy on dips, sell on rise” approach dominating in the near term, said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth. “A decisive move beyond resistance levels will require a combination of easing crude prices, stability in currency, and a shift in institutional flows. Until then, expect continued volatility with stock-specific action driving the broader narrative.”

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