Indian stock markets concluded Monday's trading session on a strong upward trajectory, fueled by positive global cues and hopes of a de-escalation in geopolitical tensions. The benchmark Nifty 50 index surged past the 24,000 mark, a level not seen since May 8, while the Sensex also recorded substantial gains.
Market Snapshot: Sensex and Nifty Soar
The 30-share BSE Sensex climbed an impressive 1,074 points, settling at 76,489. Concurrently, the NSE Nifty 50 added 312 points to close at 24,031. This robust performance led to a significant increase in investor wealth, with the market capitalization of BSE-listed firms rising to ₹468.79 lakh crore, an increase of ₹7 lakh crore from the previous trading session on May 22.
Geopolitical Optimism and Crude Oil Impact
The primary catalyst for the market's rally was reports suggesting that the United States and Iran were nearing a deal to end their months-long conflict. This prospect immediately impacted global crude oil prices, with Brent crude slipping 6% to $94.74 per barrel from its previous close of $100 per barrel. Lower oil prices are generally seen as a positive for oil-importing economies like India, reducing inflationary pressures and improving corporate margins.
Sectoral Performance and Top Gainers
Sentiment on Dalal Street was further bolstered by a broad-based rally across key sectors. Auto stocks and banking stocks were particularly strong performers. The BSE auto index zoomed 1,008 points to 58,298, while the BSE Bankex ended 1,385 points higher at 62,290.
Among the top Sensex gainers, shares of Bajaj Finance, L&T, HDFC Bank, Eternal, Bajaj Finserv, Kotak Mahindra Bank, SBI, ICICI Bank, and M&M all saw increases of up to 2.80%.
Analyst Outlook
Shrikant Chouhan, Head Equity Research at Kotak Securities, noted, "After a long time, Nifty not only surpassed the 20-day SMA but also succeeded in closing above it, which supports further uptrend from the current levels. For trend-following traders, the 20-day SMA or 23,875/76000 would act as a key support zone. Above this, the market could continue positive momentum towards 24,200-24,250/77000-77200."
Rupak De, Senior Technical Analyst at LKP Securities, added, "After spending several days below the 20EMA, the Nifty has reclaimed both the 20EMA and the 50EMA, indicating a strong sign of sustained recovery in market sentiment. The bullish crossover in the RSI is further supporting the positive momentum in the market. In the short term, the trend is likely to remain strong, with the potential to move towards 24,200 and higher."
The market also saw 154 stocks hitting their 52-week highs, while 51 shares touched their 52-week lows, indicating a strong positive momentum dominating the trading session.