Indian equities ended Monday’s session on a strong note, with both benchmark indices gaining nearly 1%, as a sharp decline in crude oil prices amid easing tensions in West Asia boosted investor sentiment. Strong buying in information technology stocks further supported the rally, helping the markets extend their winning streak to a fourth consecutive session.
The Nifty 50 rose 0.78% to close at 24,573, while the Sensex advanced 0.75% to settle at 78,677. The broader markets also participated in the rally, with the Nifty Midcap 100 and Nifty Smallcap 100 indices climbing more than 1% each, outperforming the benchmark indices.
Among the sectoral indices, Nifty IT and Nifty Private Bank emerged as the top gainers, rising 3.28% and 2%, respectively. Nifty Realty, Nifty Chemicals, and Nifty FMCG also posted strong gains of over 1.5% each. Nifty Media was the only sectoral loser, declining 3.41%.
The rally was largely driven by a sharp fall in crude oil prices after U.S. President Donald Trump announced that peace talks with Iran would resume on Monday, following his decision to cancel a planned military strike against the Islamic Republic.
Trump said in a social media post that he had called off the planned strikes, claiming that Middle East allies had agreed on the framework of a peace deal, including the reopening of the Strait of Hormuz.
Crude oil prices have witnessed sharp swings since the U.S. and Israel launched attacks on Iran in late February, with prices surging above $100 per barrel on multiple occasions amid fears of supply disruptions.
IT, earnings-driven stocks lead Monday’s rally
Urban Company and Pine Labs were among the top gainers of the session, surging 13% and 10%, respectively, after both companies reported strong June-quarter earnings that exceeded Street expectations. Balrampur Chini Mills also rebounded sharply, rising 10.3% after a two-day losing streak.
Aegis Logistics was another standout performer, climbing 8.4% to ₹1,388 apiece. Meanwhile, the earnings-driven rally in Redington extended into a third consecutive session, with the stock gaining another 8% to close at a fresh all-time high of ₹357.
The rally was particularly strong in the technology space, where most large-cap IT stocks ended with robust gains. L&T Technology Services (LTTS) and TCS led the pack, rallying 7.5% and 4.6%, respectively. Infosys, Mphasis, Coforge, Wipro, and HCL Technologies also advanced between 2% and 4.4%.
Buying interest extended to the mid- and small-cap IT segment, with Firstsource Solutions, Sonata Software, and Birlasoft gaining more than 5% each. Among new-age technology stocks, Paytm and Meesho rose 5% and 4%, respectively.
The auto ancillary space also witnessed broad-based buying, with Jyoti CNC Automation, Gabriel India, and Craftsman Automation each ending the session with gains of more than 4.5%.
Selling pressure intensifies in media, capital goods and select midcaps
Zee Entertainment emerged as the session’s biggest laggard, plunging 14.3% as SEBI bars Subhash Chandra, Punit Goenka from securities market for 1 year.
Muthoot Finance, Blue Jet Healthcare, and Latent View Analytics also witnessed sharp selling pressure, with each stock declining between 6% and 7.3%.
Weakness was also visible in the capital goods space, where CG Power and Industrial Solutions and Thermax fell 4.3% each amid broad-based profit booking.
Selling pressure extended across several other counters as well. GAIL (India), OneSource Specialty Pharma, Indian Energy Exchange (IEX), Zydus Wellness, Delhivery, SAIL, Capri Global Capital, BSE, and MCX all ended the session with losses of more than 2%.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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