Mumbai, July 27: After a continuous decline over the past five days, the Indian stock market witnessed a significant surge on Monday, driven by a drop in crude oil prices following the postponement of attacks by the United States and Iran. Major benchmarks, Sensex and Nifty 50, recorded gains of up to 1 percent.
At the close of trading, the 30-share Sensex rose by 776.01 points, or 1.02 percent, reaching 76,835.78, while the NSE’s Nifty 50 closed up by 228.50 points, or 0.96 percent, at 23,995.95.
In broader markets, the Nifty Midcap 100 index saw a rise of 1.11 percent, and the Smallcap 100 index increased by 1.31 percent.
Sector-wise, all sectors ended in the green. The Nifty Media sector emerged as the top performer with a 2.4 percent increase, followed by Nifty IT with a 2.3 percent gain. Nifty Realty rose by 2.2 percent, while Nifty Auto and Nifty Pharma recorded increases of 1.6 percent and 1.5 percent, respectively.
Additionally, Nifty FMCG saw a rise of 1 percent, Nifty Bank increased by 0.7 percent, Nifty Infra by 0.66 percent, Nifty Metal by 0.6 percent, Nifty Consumer Durables by 0.45 percent, Nifty Private Bank by 0.42 percent, and Nifty PSU Bank by 0.22 percent.
In terms of individual stocks, top gainers included Eternal, InterGlobe Aviation, Infosys, Bajaj Finance, Max Health, and Shriram Finance, while ONGC, HDFC Life, HDFC Bank, Coal India, Power Grid, and Dr. Reddy’s Labs faced losses.
The total market capitalization of BSE-listed companies increased from approximately ₹476 lakh crore to around ₹481 lakh crore, resulting in a gain of ₹5 lakh crore for investors in a single session.
A market expert noted that the pause in attacks in West Asia has alleviated concerns about rising import costs and inflation, contributing to the market’s positive momentum. The sharp decline in crude oil prices and a decrease in long-term bond yields have also strengthened hopes for a lasting resolution to the situation. Furthermore, signs of long unwinding in the market indicate an improvement in investor sentiment.
Experts suggest that the market will be closely watching the upcoming monetary policy meetings of the US Federal Reserve, Bank of England, and Bank of Japan this week, as these central banks may be in a more comfortable position to maintain current interest rates.
On the domestic front, conditions appear positive, with expectations of relief from inflation due to a deficit in monsoon rainfall. Additionally, first-quarter corporate results have exceeded expectations, and a positive outlook on business activities is bolstering market sentiment.
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