Indian equity markets closed higher on Monday amid continued volatility and global uncertainties, with both the BSE Sensex and Nifty 50 ending the session in positive territory.
Markets advanced following easing geopolitical tensions globally and a sharp decline in crude oil prices. Reports of a potential peace agreement between the United States and Iran improved investor sentiment, contributing to gains in domestic equities. Buying activity remained dominant throughout the trading session, leading major indices to close higher.
The BSE Sensex climbed 1,073 points to close at 76,488. Sustained buying was seen during the session, particularly in banking and automobile stocks. The improvement in investor sentiment came after markets remained under pressure in recent sessions due to global uncertainties.
The Nifty 50 rose 312 points to settle at 24,031. The index crossed the 24,000 mark again after several days, returning above the key psychological level.
Large-cap stocks witnessed b buying during Monday’s session, with gains recorded in Larsen & Toubro, HDFC Bank, Bajaj Finance and Adani Enterprises. The automobile sector also saw buying interest, particularly in entry-level and mid-segment stocks. Most major sectoral indices closed in positive territory during the rally.
Banking, auto, oil and gas, realty, media and energy indices recorded gains of up to 1%. Investors also bought midcap and smallcap shares, supporting broader market momentum.
Brent crude oil prices declined by more than 5% in global markets and fell below $100 per barrel. Expectations of a potential agreement between the United States and Iran reduced concerns over supply disruptions. For a major oil-importing country such as India, lower oil prices could help contain inflation and reduce corporate costs.
Positive cues from foreign markets also influenced the Indian currency. The rupee strengthened by 47 paise to close at 95.23 against the US dollar on Monday. A ber rupee is considered a positive signal for foreign investors.
