By Our Business Correspondent
Indian equity benchmarks staged a strong recovery on Monday, snapping a five-session losing streak as easing crude oil prices, improving global sentiment and optimism surrounding the ongoing first-quarter earnings season prompted investors to return to equities. A rally in information technology stocks, aided by a foreign brokerage’s upgrade of the sector to “neutral” from “underweight”, further strengthened the market.
The benchmark indices ended nearly 1% higher, with the Nifty closing just shy of the psychologically important 24,000 mark. The S&P BSE Sensex gained 776.01 points, or 1.02%, to settle at 76,835.78, while the NSE Nifty 50 advanced 228.50 points, or 0.96%, to end at 23,995.95.
The recovery comes after a sharp correction over the previous five trading sessions, during which the Sensex had declined 2.67% and the Nifty had lost 2.32%. Monday’s rally reflected renewed investor confidence following a steep fall in global crude oil prices, easing geopolitical concerns and positive signals from international markets.
Among the heavyweight contributors to the Nifty’s gains were Eternal, which surged 5.61%, Infosys, up 3.59%, and Bajaj Finance, which rose 3.57%. The sharp rally in Infosys reflected renewed buying interest in IT stocks after a foreign brokerage upgraded its outlook on the sector, suggesting valuations had become more attractive following recent corrections.
The broader market outperformed the benchmark indices, indicating wider participation across sectors. The BSE MidCap Index rose 1.13%, while the BSE SmallCap Index gained 1.34%, highlighting strong investor appetite beyond frontline stocks.
Market breadth also remained firmly positive. On the National Stock Exchange, 2,259 stocks advanced compared with 1,071 declines, while 116 shares remained unchanged.
Volatility cooled significantly during the session. The India VIX, widely regarded as the market’s fear gauge, dropped 9.76% to 12.66, signalling improved investor confidence and reduced expectations of near-term market turbulence.
Macro indicators remain supportive
Fresh macroeconomic data also provided support to market sentiment. According to the Reserve Bank of India, the country’s foreign exchange reserves increased by $1.08 billion to $676.24 billion during the week ended July 17, 2026.
Foreign currency assets—the largest component of reserves—rose by $4.55 billion to $551.06 billion. However, gold reserves declined by $3.48 billion to $101.75 billion during the reporting week. India’s holdings of Special Drawing Rights increased marginally by $44 million to $18.67 billion, while the reserve position with the International Monetary Fund slipped by $32 million to $4.76 billion.
The rupee also strengthened against the US dollar, trading around 95.94 compared with its previous close of 96.53, supported by improved risk appetite and lower crude prices. Bond markets also reflected positive sentiment, with the yield on the benchmark 10-year government security easing to 6.77% from 6.83% previously.
Commodity markets remained favourable for import-dependent economies. Brent crude for September delivery fell sharply by more than 8% to $88.85 per barrel, easing inflation concerns and raising expectations that input costs for several industries could moderate.
Gold prices, however, edged higher, with MCX Gold futures for August delivery rising 0.57% to ₹1,43,925 per 10 grams.
Global markets provide strong support
International markets offered encouraging cues throughout the trading session.
Asian equities ended broadly higher after reports suggested a pause in hostilities between the United States and Iran over the weekend, reducing concerns over further disruptions in global energy supplies and triggering a sharp correction in oil prices.
European markets also rallied strongly as investors welcomed lower crude prices ahead of a busy week featuring major central bank meetings and a fresh round of corporate earnings announcements.
US futures indicated a strong opening for Wall Street, with Dow Jones futures gaining nearly 590 points.
Investor attention globally is now focused on earnings from leading technology companies and the upcoming US Federal Reserve policy meeting, both of which are expected to influence market direction in the coming sessions.
Earnings continue to drive stock-specific action
Corporate earnings remained the primary trigger for individual stocks.
Real estate major Lodha Developers climbed 5.27% after reporting a 103.36% year-on-year surge in consolidated net profit to ₹1,372.1 crore for the June quarter. Revenue rose 43.1% to ₹4,996.7 crore, reflecting sustained demand across its residential portfolio.
AU Small Finance Bank gained 5.08% after posting a 37% increase in standalone net profit to ₹795.95 crore, supported by healthy growth in total income.
Canara Bank advanced 1.08% after reporting modest growth in quarterly earnings, while Tata Consumer Products rose 1.84% after posting nearly 28% growth in consolidated net profit alongside double-digit revenue expansion.
Seshasayee Paper and Boards gained 3.42% after reporting a near doubling of quarterly profit, driven by higher production, improved sales volumes and stronger realisations.
Vedant Fashions also traded higher after reporting healthy growth in both revenue and profit during the quarter.
Despite reporting a 43.6% decline in quarterly net profit, Jindal Steel gained 2.92% as investors focused on the company’s robust revenue growth and improving operational outlook.
Stocks under pressure
Not all earnings announcements were well received.
Defence technology company Zen Technologies fell 5% after reporting a nearly 28% decline in quarterly profit and lower revenues.
Birla Corporation declined 5.42% after reporting a marginal fall in quarterly earnings despite moderate revenue growth, indicating pressure on margins.
SBFC Finance shed 2.01% even though it reported nearly 29% growth in net profit, suggesting investors may have been concerned about valuations or future growth expectations.
Top gainers and losers
Major gainers
- Eternal: +5.61%
- Lodha Developers: +5.27%
- AU Small Finance Bank: +5.08%
- Fairchem Organics: +5% (upper circuit)
- Infosys: +3.59%
- Bajaj Finance: +3.57%
- Seshasayee Paper and Boards: +3.42%
- Jindal Steel: +2.92%
- Tata Consumer Products: +1.84%
Major losers
- Birla Corporation: -5.42%
- Zen Technologies: -5.00%
- SBFC Finance: -2.01%
IPO market remains buoyant
Primary market activity continued to remain robust with strong investor participation.
INDO-MIM emerged as the biggest attraction, receiving subscriptions of 72.31 times the shares on offer by the close of bidding on Monday.
Xtranet Technologies attracted bids worth 12.16 times the issue size, while Lohia Corp was subscribed 7.23 times, reflecting sustained investor appetite for new listings despite recent volatility in the secondary market.
Outlook
Market participants expect sentiment to remain driven by corporate earnings, global macroeconomic developments and the trajectory of crude oil prices. Lower energy costs, improving global risk appetite and easing volatility have provided near-term support to equities. However, investors are expected to remain cautious ahead of key central bank decisions and additional quarterly earnings announcements over the coming days, which could determine whether Monday’s rebound develops into a sustained recovery.
Disclaimer: This report is based solely on the information provided in the source material shared by the user. Figures, market data, company results and geopolitical developments have been retained from the source and have not been independently verified.