Sensex Jumps 776 Points, Nifty Near 24,000 As Markets Snap Five-Day Losing Streak

Indian equity benchmarks snapped their five-session losing streak on Monday, as a sharp decline in crude oil prices, firm global cues and buying across IT and broader markets triggered a relief rally.

The Sensex ended 776.01 points, or 1.02%, higher at 76,835.78, while the Nifty gained 228.50 points, or 0.96%, to settle at 23,995.95.

Market breadth remained positive, with 2,646 shares advancing, 1,530 declining and 176 remaining unchanged.

Eternal, InterGlobe Aviation, Infosys, Bajaj Finance and Shriram Finance were among the biggest gainers on the Nifty. ONGC, Cipla, HDFC Life, HDFC Bank and Dr Reddy's Laboratories were among the major losers.

Crude Oil Retreat Sparks Relief Rally

A sharp decline in crude oil prices emerged as one of the key triggers for Monday's recovery. Brent crude fell 4% to $92.84 per barrel after Iran said on Sunday that it would halt its attacks as long as the United States did the same.

The decline in crude provided relief to Indian equities after elevated oil prices had weighed heavily on the market in recent sessions. Lower crude prices ease concerns around inflation, import costs and pressure on corporate margins for India, one of the world's largest crude oil importers.

The rupee also strengthened sharply, ending 68 paise higher at 95.89 against the US dollar compared with Friday's close of 96.57.

Vinod Nair, Head of Research at Geojit Investments Limited, said a pause in strikes in West Asia had eased concerns over rising import costs and inflation, triggering a relief rally in the market.

"The sharp correction in crude oil prices, along with a decline in long-term bond yields, has also raised hopes of a durable resolution, supported by signs of long unwinding," Nair said.

IT Stocks Lead Sectoral Rally

Buying was broad-based, with the Nifty Media index emerging as the top sectoral performer with a gain of 2.4%. Nifty IT climbed 2.3%, while Nifty Realty advanced 2.2%.

Nifty Auto and Nifty Pharma rose 1.6% and 1.5%, respectively. Nifty FMCG gained 1%, while Nifty Bank advanced 0.7%. Nifty Infrastructure, Metal, Consumer Durables, Private Bank and PSU Bank also ended higher.

IT shares were among the biggest contributors to the market recovery, with Infosys gaining more than 3% after Jefferies upgraded the sector to 'Neutral' from 'Underweight'.

Broader markets participated in the rally, with the Nifty Midcap 100 gaining 1%, while the Nifty Smallcap 100 advanced 1.3%.

Global Cues, Central Bank Meetings In Focus

Firm global cues further supported domestic sentiment. Asian markets, including Japan's Nikkei 225, China's Shanghai Composite and Hong Kong's Hang Seng, traded higher, while US stock futures indicated a positive opening on Wall Street.

Investors are now turning their attention to key central bank policy meetings this week. Expectations remain that the US Federal Reserve will leave interest rates unchanged, although the probability of a 25-basis-point rate hike has risen to 36.3% from 12.8% a week earlier, according to CME FedWatch data cited by Reuters.

Nair said the upcoming meetings of the US Federal Reserve, Bank of England and Bank of Japan could provide greater flexibility to maintain the status quo on interest rates.

"On the domestic front, a narrowing rainfall deficit is adding comfort to the inflation outlook, supported by better-than-expected Q1 earnings and a positive business outlook," he added.