Benchmark equity indices snapped a three-day losing streak on Monday, rising by up to 0.83% as buying emerged in beaten-down index heavyweights amid mixed global cues. The rebound came despite persistent geopolitical uncertainties, as efforts to resume peace talks over the Iran conflict remained stalled. Brent crude prices rose by $3 to $108.5 per barrel.
Starting the week on a strong note, the Sensex jumped 639.42 points, or 0.83%, to close at 77,303.63, while the Nifty gained 194.75 points, or 0.81%, ending the session at 24,092.70.
In the previous three sessions, the Sensex and Nifty had declined 3.29% and 2.76%, respectively.
“The upmove was primarily driven by a rebound in beaten-down heavyweights across sectors, particularly Reliance Industries, along with positive developments such as a sharp rally in pharma majors following global acquisition news,” said Ajit Mishra, SVP – Research at Religare Broking. “Additionally, optimism around potential progress in US–Iran negotiations supported global sentiment, even as crude oil prices remained elevated,” he added.
“Markets were in an oversold position after last week’s steep correction, while a recovery in several global equities prompted renewed buying in beaten-down sectors,” said Ankur Punj, MD & Business Head at Equirus Wealth.
“Although markets held on to their gains through the session, rising crude prices due to a lack of progress in peace talks will keep investors on edge. Selling has also intensified in recent weeks due to persistent FII outflows, while the rupee’s weakness has further aggravated concerns,” Punj added.
Overall market breadth remained positive, with 3,023 gainers against 1,345 losers on the BSE. Outperforming the benchmarks, the broader BSE Midcap and BSE Smallcap indices surged 1.40% and 2.10%, respectively. Investor wealth increased by Rs 6.42 lakh crore to Rs 467.92 lakh crore.
On the sectoral front, pharma, consumer durables, realty, healthcare, and IT were the top gainers, rising by up to 2.62%.
With a 7.03% gain, Sun Pharma emerged as the top gainer among Sensex and Nifty constituents after announcing the acquisition of US-based Organon & Company at a valuation of $12 billion.
Other top Sensex gainers included Reliance Industries, Adani Ports, Tech Mahindra, and Mahindra & Mahindra, which rose by up to 2.88%.
Reliance Industries and Sun Pharma contributed 219 points (34%) and 103 points (16%), respectively, to the Sensex’s 639-point gain.
Foreign portfolio investors sold shares worth Rs 1,151.48 crore ($122.24 million), while domestic institutional investors bought equities worth Rs 4,123.92 crore, as per provisional data from the BSE.
