On a day when many Asian markets observed holidays, Indian benchmark indices kicked off the week with impressive gains, buoyed by a decline in crude oil prices and a weakening dollar. For the second consecutive session, the Sensex surged, closing at 80,796.84, a rise of 294.85 points or 0.37%. Meanwhile, the Nifty finished at 24,461.15, climbing 114.45 points or 0.47%. Notably, broader indices outperformed the benchmarks, with the BSE Midcap and BSE Smallcap increasing by 1.45% and 1.23%, respectively.
Crude Oil Prices Drop Significantly
On Monday, Brent crude oil prices experienced a notable decline of 4.55%, falling below $60 per barrel to settle at $58.50. This drop followed the OPEC+ decision to increase output over the weekend, which is set to boost global supply levels. Concurrently, the dollar index was down by 0.38%, trading at 99.64.
Adani Group Sees Significant Market Activity
Stocks associated with the Adani Group witnessed strong demand, fueled by news of group representatives engaging with officials from the Trump administration regarding a potential case dismissal related to bribery allegations. The market capitalization of the group soared by Rs 72,340 crore, with shares climbing up to 11%. Notably, Adani Enterprises saw a rise of 7%, reaching Rs 2,452.70.
Sector Performance Overview
While the banking sector faced some challenges, with SBI and Kotak Mahindra Bank declining due to disappointing Q4 earnings, other sectors thrived. Notable performers included services, oil and gas, auto, consumer discretionary, and utilities, which collectively increased by up to 2.99%.
- Market breadth:
- Gainers: 2,562
- Losers: 1,460
- Total market cap increase: Rs 4.7 lakh crore
Asian Markets Quiet as Holidays Impact Trading
In Asia, several markets—including those in China, Hong Kong, Japan, South Korea, and Thailand—remained closed. However, Singapore and Indonesia registered slight gains, while Taiwan, the Philippines, and Malaysia experienced declines of up to 1.23%.
Prashanth Tapse, Senior Vice President of Research at Mehta Equities, noted, "Given that most Asian markets were closed, local investors approached trading with caution. There were selective bullish bets across various sectors, excluding banks. In recent weeks, foreign institutional investors (FIIs) have consistently purchased local equities, which bodes well for Indian markets despite ongoing uncertainties regarding global tariffs and geopolitical developments."
Positive Market Sentiment Amid Foreign Inflows
"Beginning the week on a solid note, the markets benefited from stable foreign inflows and optimism surrounding a potential India-US trade deal. The gains were widespread, especially in small- and mid-cap segments, with nearly all sectors closing positively," commented Vikram Kasat, Head of Advisory at PL Capital. He added that the strength of Asian currencies and easing global trade tensions contributed to the positive market sentiment, even as trading activity was muted in some global arenas due to holidays.
In conclusion, despite external pressures, the Indian market displayed resilience, driven by sectoral gains and foreign investments, setting a promising tone for the weeks ahead.
