Sensex surges 639 pts, Nifty tops 24,050 as easing tensions lift sentiment
By Our Business Correspondent
Domestic equity markets staged a strong comeback on Monday, snapping a three-session losing streak as improving global cues and steady fourth-quarter earnings buoyed investor sentiment. Benchmarks surged across the board, with broad-based buying visible in frontline as well as mid- and small-cap stocks, as concerns over geopolitical tensions showed signs of easing.
The rally was largely underpinned by reports suggesting that Iran had proposed a plan to the United States to reopen the strategically critical Strait of Hormuz. The development helped calm fears of potential supply disruptions in global oil markets, lending stability to crude prices and providing relief to equity investors who had been wary of inflationary pressures stemming from elevated energy costs.
Against this backdrop, the S&P BSE Sensex jumped 639.42 points, or 0.63%, to close at 77,303.63, while the Nifty 50 advanced 194.75 points, or 0.81%, to settle at 24,092.70. Notably, the Nifty reclaimed and held above the psychologically important 24,050 level, signalling renewed bullish momentum after a cumulative decline of nearly 3% over the previous three sessions.
| Index | Closing Level | Change (Points) | Change (%) |
| S&P BSE Sensex | 77,303.63 | +639.42 | 0.63% |
| Nifty 50 | 24,092.70 | +194.75 | 0.81% |
| BSE 150 MidCap | — | — | 1.38% |
| BSE 250 SmallCap | — | — | 1.98% |
Sectoral Strength and Market Breadth
The uptrend was supported by gains across all sectoral indices on the NSE, reflecting a decisive shift in market breadth. Pharma and consumer durables stocks led the rally, benefiting from defensive positioning as well as optimism around earnings visibility.
Market breadth remained firmly positive, with 3,075 stocks advancing on the BSE against 1,288 declines, while 208 shares remained unchanged. The broader markets significantly outperformed the benchmarks, underscoring improved risk appetite among investors. The BSE MidCap index rose 1.38%, while the SmallCap index surged 1.98%, indicating strong participation beyond blue-chip counters.
Volatility indicators also reflected easing nervousness. The India VIX declined 6.77% to 18.38, suggesting that near-term uncertainty in the markets has moderated following recent geopolitical developments.
Key Movers: Pharma, Energy, and Financials in Focus
Among index heavyweights, Sun Pharmaceutical Industries emerged as the top gainer, soaring over 7% after announcing a definitive agreement to acquire all outstanding shares of Organon & Co. at an enterprise valuation of $11.75 billion. The deal is seen as a strategic move to strengthen its global footprint and diversify its product portfolio.
Reliance Industries also contributed significantly to the rally, rising 2.88%. While the company reported an 8.9% year-on-year decline in net profit for the fourth quarter, robust revenue growth of 12.9%, driven by its oil-to-chemicals, digital services, and retail segments, provided support to investor sentiment. However, a natural decline in production from the KG-D6 gas fields weighed on overall profitability.
Banking major HDFC Bank added modest gains, lending further stability to the indices.
Financials Mixed Amid Earnings Announcements
The financial sector presented a mixed picture as earnings announcements drove stock-specific movements. Axis Bank declined over 3% after reporting a marginal dip in net profit, despite a modest rise in total income. The bank also outlined plans to raise up to ₹55,000 crore through a mix of debt and equity instruments, signalling a focus on capital strengthening.
In contrast, IndusInd Bank rallied more than 6% after swinging back to profitability in the fourth quarter, compared to a loss in the year-ago period. Similarly, IDFC FIRST Bank gained over 4% on steady earnings growth.
Non-banking financial companies also saw notable action. Mahindra & Mahindra Financial Services surged nearly 8% following a strong 55% jump in net profit, while Shriram Finance declined despite robust earnings growth, indicating profit-booking at higher levels.
Consumer and Industrial Stocks Show Strength
In the consumer segment, Varun Beverages advanced nearly 6% after reporting strong double-digit growth in both profit and revenue, reflecting resilient demand conditions.
Real estate player Lodha Developers also posted gains on the back of improved earnings performance, while India Cements rallied sharply following a multi-fold jump in net profit.
Meanwhile, mixed earnings led to declines in select stocks. Mangalore Refinery and Petrochemicals fell sharply after reporting a steep drop in profitability, while Supreme Petrochem also ended lower despite improved earnings, reflecting valuation concerns.
Fintech and Digital Space Developments
In the fintech space, One MobiKwik Systems surged nearly 11% after securing approval from the Reserve Bank of India for a non-banking financial company (NBFC) licence, a move expected to expand its lending operations.
On the other hand, One 97 Communications declined after announcing that its subsidiary, Paytm Payments Bank, would be wound up following the cancellation of its banking licence by the RBI, raising concerns about the company’s regulatory challenges.
Global Cues: Central Banks and Commodities in Focus
Global markets offered mixed but largely supportive cues. European equities traded higher as investors awaited key monetary policy decisions from major central banks, including the U.S. Federal Reserve, the European Central Bank, and the Bank of England.
The upcoming Federal Reserve decision is particularly significant, as it may be among the final policy meetings under Chair Jerome Powell, with markets closely watching for signals on inflation and interest rate trajectories.
Asian markets ended on a mixed note, with Japan and South Korea hitting record highs, while other indices remained subdued due to elevated crude oil prices and lingering uncertainty around U.S.-Iran negotiations.
In China, industrial profits rose sharply in March, reflecting resilience in the manufacturing sector despite global headwinds.
On Wall Street, the S&P 500 and Nasdaq Composite closed at record highs in the previous session, supported by optimism over potential diplomatic progress, while the Dow Jones Industrial Average edged lower.
Commodities, Currency, and Bond Markets
In commodities, Brent crude prices climbed to around $107.80 per barrel, up over 2%, amid ongoing geopolitical developments. Gold prices, however, eased marginally, reflecting reduced safe-haven demand.
The Indian rupee strengthened slightly against the U.S. dollar, while the dollar index declined, indicating some softening in global currency markets.
Bond yields edged higher, with India’s 10-year benchmark yield rising to 6.952%, reflecting cautious sentiment in fixed-income markets amid global rate uncertainties.
Outlook
Market participants are expected to remain cautious yet optimistic in the near term, with attention shifting to upcoming central bank decisions, geopolitical developments, and the ongoing earnings season. Analysts note that while volatility may persist, improving global cues and domestic earnings resilience could provide support to equities.
Overall, Monday’s rally signals a potential reversal in short-term sentiment, with investors selectively accumulating stocks amid improving macroeconomic visibility and easing external risks.
Disclaimer: Stock market investments are subject to market risks. Please consult with a certified financial advisor before making any investment decisions.