Benchmark stock market indices rallied in early trade on Monday, even as crude oil prices stayed elevated above $100, showing that investors are looking beyond immediate risks.
The BSE Sensex was trading at 77,334.39, up 670.18 points or 0.87%, while the NSE Nifty 50 gained 199.80 points or 0.84% to 24,097.75.
The gains come after recent losses, suggesting a recovery driven by bargain buying and selective optimism.
SECTORAL PERFORMANCE ON NIFTY
All major sectoral indices were trading in the green.
- Nifty Metal led gains, up 2.11%
- Nifty Healthcare rose 2.57%
- Nifty Realty gained 1.93%
- Nifty IT climbed 1.64%
- Nifty Auto was up 1.03%
- Nifty FMCG added 0.99%
Banking indices were relatively muted, with Nifty Bank up just 0.18% and Nifty Financial Services rising 0.40%.
GAINERS AND LOSERS ON SENSEX
Buying was visible across most frontline stocks.
Among the top gainers were:
Sun Pharma, M&M, Ultratech Cement, TCS, LT, Asian Paints and SBI.
IT stocks such as Infosys and Tech Mahindra also traded higher, recovering after recent weakness.
On the losing side, only a handful of stocks were under pressure, including Axis Bank, Bajaj Finance and BEL.
WHY ARE MARKETS RISING?
The current upmove is largely a technical rebound after a sharp correction in the last few sessions. Lower valuations in large-cap stocks have attracted buying interest.
At the same time, broader markets are showing strength, with midcap and smallcap indices rising over 1%, indicating wider participation.
However, the macro risks remain intact.
“With the geopolitical situation showing no improvement and crude inching higher the implications for India’s macros and markets continue to be negative in the near-term,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
GLOBAL CUES SUPPORT SENTIMENT
Global markets, especially in the US, have been supported by strong momentum in technology stocks linked to artificial intelligence.
This has had a spillover effect on Asian markets and India.
“Even though geopolitics and energy crisis are dominating the news a major factor impacting stock markets continues to be the AI trade. The US market, driven by AI trade, is at record highs,” Vijayakumar said.
He added that global capital flows are currently shifting towards AI-driven markets.
“AI leaders like South Korea and Taiwan are attracting huge FPI flows at the cost of emerging markets like India,” he noted.
The rally was broad-based, with most sectoral indices trading in the green.
IT stocks rose over 1.5%, metals gained more than 2%, and sectors like pharma, realty and auto also saw buying interest.
Banking stocks were relatively muted but still positive, indicating stability in the market.
OIL REMAINS THE KEY OVERHANG
Despite the rally, crude oil prices continue to be a major concern.
Brent crude remained above $106–$107 per barrel, while WTI hovered around $95, reflecting ongoing geopolitical tensions and supply concerns.
This remains a key risk for India’s economy.
“Markets will continue to remain volatile responding to news,” Vijayakumar said, highlighting the uncertainty linked to global developments.
WHAT NEXT FOR MARKETS
The near-term outlook remains uncertain, with multiple global and domestic factors at play.
Any reversal in global AI-driven flows could change the direction of markets.
“Any reversal of AI trade will also alter the direction of portfolio flows,” Vijayakumar said.
For now, the market is balancing optimism from domestic growth with caution from global risks.
“In the current state of total uncertainty, investors can wait and watch the geopolitical developments and take decisions as clarity emerges,” he added.
