Indian Stocks Rally as Sensex Surges 1,233 Points, Nifty Closes Above 23,440
MUMBAI–Indian stock markets posted strong gains Monday, with the benchmark Sensex surging more than 1,200 points and the Nifty closing above 23,440, as declining crude oil prices and optimism over U.S.-Iran negotiations lifted investor confidence.
The BSE Sensex climbed 1,233.25 points, or 1.66%, to close at 75,692.78, while the NSE Nifty 50 advanced 387.70 points to finish at 23,440.80.
The gains marked the third consecutive session of advances for India’s benchmark stock indexes, supported by positive global market signals and buying in major companies.
Investor sentiment improved as crude oil prices declined amid expectations of progress in diplomatic talks between Washington and Tehran. Lower energy prices helped ease concerns about inflation and India’s import costs.
Shares of Reliance Industries, one of the country’s largest publicly traded companies, contributed significantly to the rally.
Coal India, Tata Steel and JSW Steel were among the leading gainers on the Nifty, reflecting strong buying interest in energy and metal stocks.
The Nifty Oil & Gas and Nifty Metal indexes recorded the strongest sectoral performances during the session, while technology and media stocks lagged.
The Nifty IT and Nifty Media indexes ended in negative territory, indicating that gains were concentrated in certain sectors despite the substantial increase in the benchmark indexes.
The broader market also showed signs of weakness, with the Nifty MidCap 100 declining 1.19% and the Nifty SmallCap 100 falling 0.71%.
Market analysts said the Nifty’s close above its 50-day simple moving average represented a positive technical development, with the index approaching resistance around 23,500.
“The 23,250–23,350 band should now provide immediate support; holding it could open the way toward 23,600, while a break below 23,250 would weaken the breakout,” analysts stated.
Foreign investment flows also contributed to improving market sentiment, with international investors returning to Indian equities amid changes in global investment strategies.
“Foreign investors turning buyers as a global AI rotation also provided support to domestic equities. The rally extended to the broader market, with mid- and small-cap indices also advancing, indicating an improvement in market participation,” market watchers noted.
However, market data showed that mid-cap and small-cap indexes declined during the session, even as the benchmark indexes recorded substantial gains.
Meanwhile, the Indian rupee strengthened marginally against the U.S. dollar, gaining approximately 0.12% to trade around 94.90.
The currency received support from falling international crude oil prices, which can reduce India’s energy import expenses and ease pressure on foreign exchange demand.
West Texas Intermediate crude futures dropped nearly 3% to approximately $99.70 per barrel, falling below the psychologically important $100 level.
Brent crude, the international oil benchmark, traded below $109 per barrel.
Analysts said the rupee could remain within a relatively narrow trading range in the near term, depending on movements in crude oil prices and global financial markets.
“The rupee is expected to trade in a range of 94.50–95.25,” analysts noted.
Investors are expected to continue monitoring developments in U.S.-Iran negotiations, international energy markets and foreign institutional investment flows for indications of the market’s next direction.
The Nifty’s ability to hold above its immediate support levels could determine whether the current rally extends toward the 23,600 mark in upcoming trading sessions. (Source: IANS)
