The Indian stock market rebounded on Monday, with the Sensex and Nifty rising nearly 0.4% each, after losing momentum on Friday following a five-session-long bull run.
The Sensex gained over 291 points to close at 77,094, while the Nifty 50 rose around 90 points to end the session near 24,103. Broader markets also closed in the green, with the Nifty Smallcap 100 index rising 0.6%, while the Nifty Midcap 100 index gained 0.34%.
Tech Mahindra shares jumped nearly 2% to lead gains on Sensex, while Sun Pharma, Infosys and Reliance Industries shares gained more than 1% each to follow. Bucking the trend, Asian Paints shares dropped over 2% to lead losses on the benchmark index.
Sectorally, Nifty Pharma gained over 1%, while Nifty FMCG and Nifty Consumer Durables closed in the red. Meanwhile, India VIX, which measures volatility in the market, dropped over 1% to 12.80. Around 1,206 stocks declined on NSE, while 2,149 advanced and 100 remained unchanged.
Middle East tensions simmer
Shipping through the Strait of Hormuz slowed, while talks between US and Iranian officials in their first meeting under an interim peace deal were off to a bumpy start. Iran announced it had again closed the waterway, citing Israeli and US violations of the interim peace deal.
US President Donald Trump threatened to resume attacks on Iran, even as US Vice President JD Vance met Iranian officials on Sunday for the first talks under an interim peace deal, while Tehran said the US had failed to meet its commitment to halt fighting in Lebanon.
What lies ahead?
The market traded within a narrow range, albeit with a positive bias, as investors continued to assess the progress of US-Iran negotiations, said Vinod Nair, Head of Research at Geojit Investments.
Overall sentiment remained constructive, supported by outperformance in utilities, banking, and healthcare sectors, he added. “This strength was largely driven by a more selective, sector- and stock-specific investment approach. However, concerns around the slow progress of the monsoon could lead to inflationary pressures, potentially impacting consumer sentiment and demand in agriculture-linked segments. While this may moderate near-term momentum, the broader outlook remains favourable, supported by a resilient earnings trajectory and continued policy backing, which underpin a constructive medium-term view,” according to the analyst.
Technical view on Nifty
Oscillators are all seen turning lower, but that is not surprising given downside gapped opening on Friday that followed a five-day spree of higher close, said Anand James, Chief Market Strategist at Geojit Investment. “We remain optimistic about an upmove, given a hammer candle formation on Friday pointing to bulls gaining upper hand. We will start the week with hopes of 24300-600, but also with eyes on 23800 as the downside marker,” he added.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
