Indian equity benchmarks rallied sharply on Monday, with the Nifty surging 1.6% and the Sensex gaining 0.7%, after US President Donald Trump said talks with Iran would take place today. The announcement triggered a sharp drop in oil prices, lifting investor sentiment on Dalal Street.
Sensex rose over 544 points to end above 78,639, while Nifty 50 rose around 391 points to 24,774. The sharp gains added nearly Rs 5 lakh crore to the total market capitalisation of all companies listed on BSE, pulling it up to Rs 491 lakh crore.
Here are today’s top gainers on Nifty
Here are today’s top gainers on Sensex
Here are today’s top losers on Nifty
Here are today’s top losers on Sensex
What lies ahead for Dalal Street?
The decline in crude oil prices, driven by expectations of renewed dialogue between the US and Iran, provided relief to markets by easing concerns over inflation and corporate earnings, said Vinod Nair, Head of Research at Geojit Investments. He added that the market sentiment was further supported by a rebound in FII inflows and a strengthening rupee, although elevated US bond yields remain a key risk to the sustainability of foreign flows into emerging markets. Most sectors ended in positive territory, led by IT and FMCG, while pharma witnessed profit booking following its recent gains and the latest Q1 results, he noted.
The Q1 FY27 earnings season continues to progress ahead of expectations, with small-cap companies emerging as the strongest performers relative to large- and mid-cap peers, the analyst said. “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,” he added.
Nifty rebounded after nearly two months of consolidation, delivering a decent recovery despite the prevailing subdued market sentiment, said Rupak De, Senior Technical Analyst at LKP Securities. However, based on the closing price-adjusted chart, the index has rallied up to its 200-day moving average (200DMA), which is a crucial resistance level, he added.
"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," according to the analyst.
