Indian stock markets closed higher on Monday as hopes of a breakthrough in US-Iran negotiations eased concerns over energy supplies and pushed crude oil prices lower. The improvement in global risk sentiment encouraged buying in frontline banking, technology and healthcare stocks, helping benchmark indices extend their gains despite a cautious trading session.
The Sensex rose 291 points, or 0.38 percent, to close at 77,094, while the Nifty 50 gained 90 points, or 0.37 percent, to end at 24,102.90. Broader markets also remained firm, with the Nifty Midcap 100 advancing 0.34 percent and the Nifty Smallcap 100 adding 0.60 percent.
Investor wealth increased by nearly ₹3 lakh-crore during the session as the market capitalisation of BSE-listed companies climbed to ₹480.5 lakh-crore from ₹477.5 lakh-crore in the previous trading session.
Market sentiment improved following reports that the first round of US-Iran discussions had made progress, with negotiators reportedly working towards a broader agreement over the next two months. Expectations that tensions in West Asia could ease reduced fears of supply disruptions in global oil markets.
Reflecting this optimism, Brent crude declined about 2 percent and slipped below $80 a barrel, raising hopes of lower energy costs for major importers such as India.
The gains, however, were capped by weakness in the rupee, which fell 37 paise to close at 94.70 against the dollar amid a stronger US currency and rising bond yields.
Heavyweight stocks led the market higher, with Reliance Industries, HDFC Bank, Infosys and ICICI Bank contributing significantly to the gains in both the Sensex and Nifty.
Among Nifty constituents, Cipla, Tech Mahindra and Dr Reddy's Laboratories emerged as the top gainers. Asian Paints, Titan Company and Nestle India were among the major laggards.
Most sector indices ended in positive territory. Nifty Media, Pharma and Healthcare indices gained more than 1 percent each, while Oil & Gas and IT stocks also registered healthy advances.
Financial stocks remained supportive, with the Nifty Financial Services index rising 0.58 percent and the Nifty Bank index gaining 0.43 percent.
The only major sector losers were FMCG and Consumer Durables, which declined 0.41 percent and 0.55 percent respectively.
Market breadth remained strong, with 217 stocks touching their 52-week highs on the BSE. Notable names included Adani Enterprises, Federal Bank, Pidilite Industries, Tata Communications, Bharat Forge and Adani Green Energy.
Meanwhile, 64 stocks touched fresh 52-week lows during intraday trade.
Technical indicators suggest the Nifty remains in a consolidation phase despite maintaining a positive bias. Analysts see the 24,200-24,230 zone as the immediate resistance area. A decisive breakout above this range could open the way for a move towards 24,400-24,500.
On the downside, support is seen around 24,000, with stronger support emerging in the 23,950-23,970 zone. Market participants are expected to remain focused on developments in West Asia, crude oil prices and global macroeconomic signals in the coming sessions.
