Markets rebound sharply, Sensex closes above 74,000; all sectors advance except oil & gas

Benchmark indices staged a strong late-session recovery on Monday, with both Sensex and Nifty reversing early losses to close firmly in the green, led by financials and broad-based buying across sectors.

The 30-share S&P BSE Sensex surged 787 points, or 1.07%, to settle at 74,106, while the broader NSE Nifty 50 climbed 255 points, or 1.12%, to end at 22,968.

Late surge lifts benchmarks

Markets opened on a weak note, tracking elevated crude oil prices and geopolitical tensions in West Asia, with both indices slipping sharply in early trade. However, sentiment turned decisively positive in the second half after reports of easing tensions between the US and Iran triggered a pullback in oil prices.

The reversal was swift and broad-based, with indices erasing intraday losses and scaling session highs into the close, marking a continuation of the recent “buy-on-dips” trend visible in the market.

Oil & gas the sole laggard

In terms of sectoral performance, the market breadth was decisively positive.

• 15 out of 16 sectoral indices ended higher

• Financials led the gains, with banking stocks rising over 2%

• Metals, IT and PSU banks also contributed meaningfully to the upside

However, Nifty oil & gas emerged as the sole laggard, weighed down by weakness in index heavyweights such as Reliance Industries, which declined on concerns around refining margins and export-related headwinds.

Pharma stocks also showed pockets of weakness during the session, though the overall sectoral bias remained firmly positive.

Banks lead the charge

The rally was driven primarily by banking and financial stocks, which provided the bulk of index support. Strong business updates and sustained credit growth momentum lifted sentiment in the sector.

Large private lenders and NBFCs were among the top contributors, reinforcing the leadership of financials in the current market cycle.

The positive sentiment extended beyond frontline indices; midcap index rose approximately 1.3% and smallcap index gained around 1.5%

The participation of broader markets indicates improving risk appetite, even as global uncertainties persist. India VIX, the volatility gauge, eased 0.21% to 25.47 on Monday. However, it remains elevated—nearly 86% higher than the 13.70 level recorded on February 27, just before tensions in West Asia escalated—highlighting the underlying fragility in market sentiment.

The primary trigger for the market rebound was the marginal cooling of crude oil prices following geopolitical developments, alongside supportive global cues and a strengthening of the rupee.

That said, underlying risks remain. Elevated oil prices, persistent FII outflows, and uncertainty ahead of the RBI’s policy decision continue to cap upside potential.