Benchmark stock market indices ended higher on Monday, supported by broad-based buying across sectors, even as crude oil prices remained elevated above the $100 mark.
The BSE closed at 77,303.63, up 639.42 points or 0.83%, while the NSE Nifty 50 settled at 24,092.70, gaining 194.75 points or 0.81%.
The recovery comes after recent volatility, with investors taking cues from improving global sentiment and better-than-expected earnings.
The rally was led by gains across most sectors, indicating strong participation.
Nifty Pharma rose 2.62%, Nifty Healthcare gained 2.41%, while Nifty IT was up 2.20%. Realty, media and consumer durable indices also advanced between 2% and 2.5%.
Auto and metal stocks also saw buying interest, while financial stocks remained relatively subdued with marginal gains.
The broader market outperformed frontline indices, with Nifty Midcap 100 rising 1.47% and Nifty Smallcap 100 gaining 1.90%, reflecting improved risk appetite.
Among Sensex stocks, Sun Pharma, Reliance Industries, Adani Ports, NTPC and Tech Mahindra were among the top gainers.
IT stocks such as TCS and HCLTech also gained, supported by value buying after recent corrections.
Axis Bank declined sharply, along with BEL and Trent. FMCG major Hindustan Unilever and ICICI Bank also ended in the red.
Investor sentiment improved on hopes of a possible resumption of US–Iran talks, easing some concerns around geopolitical tensions.
At the same time, stronger-than-expected Q4 earnings supported the recovery in domestic stocks.
Vinod Nair, Head of Research at Geojit Investments Limited, said the market is balancing global risks with domestic strength.
“Investor sentiment improved on renewed prospects for the resumption of U.S.–Iran talks, coupled with stronger-than-expected Q4 FY26 earnings,” he said.
He added that domestic sectors played a key role in supporting the market.
“Domestic-oriented sectors—particularly banking, FMCG, capital goods, consumer discretionary, and manufacturing-related businesses—supported the recovery,” Nair said.
Despite subdued earnings, IT stocks attracted buying interest.
“Meanwhile, the IT sector, though reporting subdued results, attracted investor interest due to valuation comfort and long-term accumulation strategies,” Nair said.
This comes after sharp corrections in IT stocks in recent sessions.
Crude oil prices continue to remain above $100 per barrel, keeping inflation concerns alive.
Markets are also watching developments around the Strait of Hormuz, as any disruption could impact global energy supply.
“Although oil prices remain above $100 per barrel and markets continue to assess the room for the opening of the Strait of Hormuz, inflation risks remain a key concern,” Nair said.
Investors are expected to stay cautious in the near term.
“Market participants are expected to closely monitor the upcoming Fed policy announcement, particularly its medium-term interest rate trajectory,” Nair added.
For now, the market’s move suggests that domestic strength and easing global concerns are helping offset pressure from high oil prices, though volatility is likely to continue.
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