On Monday, the Indian stock market made a triumphant return, breaking a two-day decline with benchmark indices surging over 1%. The rally was primarily driven by positive earnings from Reliance Industries, as well as strong performances from sectors like oil & gas, public sector banks, and pharmaceuticals. This shift in investor sentiment marks a notable recovery after recent turbulence.

Nifty and Sensex Performance

The Nifty 50 index soared by 273 points, or 1.14%, concluding the day at 24,312—a level not seen in three days. Similarly, the BSE Sensex climbed 944 points, or 1.19%, to finish at 80,156.23. This rebound was particularly significant as it alleviated concerns stemming from geopolitical tensions that had affected market performance previously.

Market Insights and Expert Commentary

Vinod Nair, Head of Research at Geojit Investments, noted, “The domestic market has rebounded from last week’s losses, which were influenced by border tensions. The surge in investor confidence was further supported by continuous buying from foreign institutional investors (FIIs) and solid earnings from Reliance Industries. A declining dollar and inflationary concerns in the U.S. may draw more FII investments into India. Nonetheless, investors should remain cautious as the market has yet to fully factor in the repercussions of the recent Pahalgam terror attack.”

Key Highlights from Monday’s Trading Session

• Intraday Movements: The Sensex experienced a remarkable rise, surpassing 1,100 points during the day, reaching a high of 80,321.88. The Nifty also jumped over 300 points, hitting an intraday peak of 24,355.10.

• Top Performers: Reliance Industries led the pack, followed closely by Sun Pharmaceuticals, JSW Steel, BEL, and Dr. Reddy’s Laboratories. Reliance’s strong quarterly results played a crucial role in the day’s trading dynamics.

• Notable Declines: On the downside, Shriram Finance emerged as the biggest loser in the Nifty 50, with other notable declines from Eternal (Zomato), UltraTech Cements, HCL Technologies, and Hindustan Unilever.

Sector Performance Overview

Among the sectoral indices, the Nifty Oil & Gas sector stood out, gaining 3.18% to close at 11,132.10, driven by the stellar performance of Reliance. Additionally, public sector banks and pharmaceutical stocks witnessed gains of 2.44% and 1.98%, respectively. The Nifty Bank index outperformed the market, climbing 750 points, or 1.37%, to settle at 55,414.10. The BSE Midcap index also saw a significant rise, increasing 568.30 points, or 1.34%, to close at 43,097.01.

The broader market reflected positive sentiments as small and mid-cap stocks gained ground. The India VIX, which measures market volatility, eased by 1.26%, closing at 16.94.

Market Breadth and Trading Activity

The overall market showed bullish trends, with 1,532 of the 2,992 stocks traded advancing, while 1,375 declined. Only 85 stocks remained unchanged, with 24 reaching a fresh 52-week high and 28 hitting a 52-week low. Additionally, 67 stocks touched the upper circuit limit, while 88 stocks fell to the lower circuit.

In summary, Monday’s trading session reflected a strong recovery fueled by solid corporate earnings and positive market sentiment, despite lingering geopolitical concerns. Investors are encouraged to stay informed and cautious as market dynamics continue to evolve.