Mumbai: Indian benchmark equity indices closed higher for the fourth consecutive session on Monday as falling crude oil prices and hopes of possible talks between the US and Iran improved investor sentiment.
The Sensex climbed 544.39 points, or 0.7 percent, to settle at 78,639.03. The Nifty ended 391 points, or 1.6 percent, higher at 24,774.30 following the introduction of the new Closing Auction Session (CAS).
Crude Boost
A sharp decline in global crude oil prices supported the market rally. Lower oil prices are positive for India as the country imports most of its energy requirements.
The fall in crude can ease inflationary pressure, reduce the import bill and improve the outlook for companies dependent on fuel and other energy inputs.
Reports of possible negotiations between the US and Iran also reduced concerns over supply disruptions, adding to the positive mood.
IT Stocks
InterGlobe Aviation, Infosys and Tata Consultancy Services were among the leading Nifty gainers. Strong buying in information technology stocks provided major support to the benchmarks.
The positive momentum extended to the broader market. The Nifty MidCap index gained 1.21 percent, while the Nifty SmallCap index advanced 1.29 percent.
Among sectors, Nifty IT, Nifty FMCG and Nifty PSU Bank recorded strong gains. However, Nifty Media underperformed the market and ended in negative territory.
Technical Outlook
Market experts said the Nifty must hold above the 24,500–24,400 support zone to maintain its recovery. A fall below 24,400 could lead to profit booking and pull the index towards 24,300–24,200.
Analysts said a sustained move above the resistance zone could strengthen bullish momentum and support further gains.
Investors will now focus on the Reserve Bank of India’s monetary policy decision. The central bank is widely expected to keep interest rates unchanged, but its comments on inflation, liquidity and the future policy path will be closely monitored.
Experts also said the Q1FY27 earnings season has remained better than expected, with small-cap companies showing stronger performance than large- and mid-cap firms.
