Domestic equities clocked healthy gains on Monday, 3 August, with the benchmark indices extending gains for the fourth consecutive session, supported by a sharp drop in crude oil prices amid hopes of a US-Iran peace deal.
The Sensex ended the day 544 points, or 0.70%, higher at 78,639, while the Nifty 50 ended 391 points, or 1.60%, higher at 24,774.30.
A broad-based rally also lifted the mid- and small-cap segments; the Nifty Midcap 100 index jumped 1.21%, while the Smallcap 100 index rose1.29%.
Investors earned over ₹4 lakh crore in a single session as the overall market capitalisation of BSE-listed firms rose to ₹490.5 lakh crore from nearly ₹486 lakh crore in the previous session.
Advance-decline ratio tilted in favour of advancers as out of nearly 4,600 stocks traded on the BSE, more than 2,800 advanced and some 1,550 stocks declined.
As many as 187 stocks, including Apollo Hospitals Enterprise, Bajaj Auto, Bajaj Finance, Cholamandalam Investment and Finance Company, Divis Laboratories, Federal Bank, One 97 Communications (Paytm), Titan Company, and TVS Motor Company, hit their 52-week highs in intraday trade on the BSE.
In just four consecutive sessions, the Sensex has climbed over 1,850 points, or 2.44%, while the Nifty 50 has gained about 800 points, or 3.3%.
Investors’ wealth has jumped by more than ₹11 lakh crore in four sessions, with the overall market capitalisation of firms listed on the BSE at ₹479 lakh crore on 28 July.
What drove the Indian stock market higher?
Falling crude oil prices, hopes of a peace deal between the US and Iran, stable domestic macro, strengthening rupee, better-than-expected Q1 results, and the return of FPIs are acting together to drive the market higher.
Brent crude prices dropped 5% to trade near $84 per barrel after the US President Donald Trump said talks with Iran would take place, raising hopes of a peace deal with Tehran and the reopening of the Strait of Hormuz.
However, Iran has reportedly denied any negotiations with the US.
Meanwhile, the Indian rupee rose 12 paise to settle at 95.31 per dollar, provisional data showed.
Foreign portfolio investors (FPIs) turned buyers in Indian equities in July after selling for four consecutive months amid a selloff in chip stocks.
“The decline in crude oil prices, driven by expectations of renewed dialogue between the U.S. and Iran, provided relief to markets by easing concerns over inflation and corporate earnings. Market sentiment was further supported by a rebound in FII inflows and a strengthening rupee, although elevated U.S. bond yields remain a key risk to the sustainability of foreign flows into emerging markets,” Vinod Nair, Head of Research, Geojit Investments, noted.
“The Q1FY27 earnings season continues to progress ahead of expectations, with small-cap companies emerging as the strongest performers relative to large- and mid-cap peers. Investors will closely watch the upcoming RBI policy meeting for commentary on inflation risks, liquidity conditions, and the future policy trajectory, although interest rates are widely expected to remain unchanged,” Nair added.
Top Nifty gainers and losers today
As many as 44 stocks ended higher in the Nifty index, with Grasim Industries, TCS, IndiGo, Infosys, and Shriram Finance at the top, rising between 4% to 5%.
Apollo Hospitals Enterprise, Sun Pharma, Maruti Suzuki India, ONGC, Tech Mahindra, and Bharti Airtel ended in the red in the index, falling up to 1.5%.
Sectoral indices today
Nifty IT jumped 3.28%, ending as the top gainer among sectoral indices. Bank Nifty surged 1.72%, while the Financial Services index climbed 1.47%. FMCG, Auto, Metal, and Realty jumped up to 2%.
Nifty Media (down 3.09%) was the only sectoral index that ended in the red.
Nifty’s technical view
Sudeep Shah, the head of technical and derivatives research at SBI Securities, said the immediate resistance for the Nifty is in the 24,920-24,950 zone.
“Any sustainable move above this zone could result in Nifty extending its up move towards 25,100, followed by 25,250 in the short term. On the downside, the immediate support for Nifty is placed in the 24,630-24,600,” said Shah.
According to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty 50 has rallied up to its 200-day moving average (200DMA), which is a crucial resistance level.
“From here, two scenarios are possible. The first is that the index faces resistance near the 200DMA and retraces towards the 24,400 level, allowing the recent sharp rally to cool off. Alternatively, if the index manages to break and sustain above the 200DMA, i.e., above 24,800, it could trigger follow-up buying and extend the rally towards 25,000–25,350,” said De.
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