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Equity benchmark indices rebounded sharply close to 1 per cent on Monday after broad-based selling in the last two trading sessions amid mixed global cues.
After a muted opening, Sensex ended 677.55 pts or 0.84 per cent positive at 81,796.15 and Nifty 50 settled 227.90 pts or 0.92 per cent higher at 24,946.50.
“Despite ongoing geopolitical tensions between Israel and Iran, the market moved higher, supported by gains in large-cap stocks, as investors maintained their focus on long-term fundamentals in the time of volatile situations,” Vinod Nair, Head of Research, Geojit Investments, said.
Nair added that geopolitical developments in the Middle East are likely to influence near-term market sentiment, with any signs of de-escalation being closely monitored. Small-cap stocks are expected to underperform in the short term, given their elevated valuations and absence of short-term triggers.
WPI inflation eased further to 0.4 per cent in May, coming in below expectations and marking the lowest level since April 2024, Rajani Sinha, Chief Economist, CareEdge Ratings, said.
While surging oil prices raised inflation concerns, but a slowdown in recent CPI inflation data helped temper some worries.
Both midcap and smallcap indexes gained 0.93 per cent and 0.95 per cent, respectively. The volatility index was down 1.60 per cent to 14.84.
Almost all major sectoral indices ended in positive territory. IT and tourism indices outperformed, gaining over 1.5 percent. Realty, oil & gas and metal indexes followed with over 1 per cent increase. Bank Nifty snaped its four sessions decline and closed higher by 0.75 per cent.
“The positive uptrend in the oil and gas sector was further fuelled by the rise in the shares of gas distribution companies after reports suggested possible revision in electric vehicle (EV) policy including a relaxation in the timeline for transitioning from petrol and gas-powered vehicles,” Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services, said.
Defence and crude-linked stocks will remain in focus amidst ongoing Israel-Iran conflict , while monsoon-linked sectors like fertilisers, agro-chemicals, rural FMCG amongst others could be in momentum on expectations of above average rainfall, Khemka added.
Among Nifty 50 pack, shares of Bharat Electronics, HDFC Life, SBI Life, UltraTech Cement, Tech Mahindra, ONGC, Eternal and HCL Technologies emerged as major gainers, while Tata Motors, Dr Reddy’s Laboratories, Sun Pharma, Adani Ports and Jio Financial were the laggards.
Among midcap, IGL and Supreme Industries zoomed over 6 per cent. Pl Industries, KPIT Technologies and MFSL surged 4 per cent. Meanwhile, Page Industries, Mazagon Dock and MRF declined 1 per cent.
Among smallcap index, Newgen Software, MCX, Atul, MGL and IIFL surged 3-4 per cent.
Shares of Sterlite Technologies, Cosmo First, Axiscades and Unimech featured among 85 stocks that hit upper circuit, while 80 stocks hit the lower circuit.
About 66 stocks — including Bharat Electronics, KVB, Manappuram Finance, Muthoot Finance, Nazara, Force Motors, JK Cement and Max Health — hit a 52-week high. Meanwhile, Easy Trip and Shalby were among the 27 stocks that hit 52-week low.
According to Ajit Mishra – SVP, Research, Religare Broking, market’s resilience amid lingering geopolitical tensions is encouraging. “Participants should remain cautious and not get carried away by a single-day rebound, especially as the index approaches the upper band of its current consolidation range, i.e., the 25,000–25,200 zone. We recommend maintaining a stock-specific trading approach, given the mixed trends across sectors, with a preference for relatively less volatile counters,” Mishra added.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said, “Rupee traded positive by ₹0.05 at 86.02 after strong buying was witnessed in Indian equities, with expectations of FII inflows following a 0.90 per cent gain in benchmark indices.
On the macro front, investors would be closing following Bank of Japan’s interest rate decision and US May retail sales data to be released later on Monday.
Crude oil prices remained range-bound after last week’s sharp rally. Going ahead, the rupee is expected to remain volatile amid the upcoming US Fed interest rate decision and India’s inflation data.
Asian markets settled in the positive territory.
Wall Street ended lower on Friday. Indian equity benchmark indexes closed lower. Sensex dived 573.38 points or 0.70 per cent to settle at 81,118.60. The Nifty fell 169.60 points or 0.68 per cent to 24,718.60. FIIs offloaded equities worth ₹1,263.52 crore on Friday.
Published on June 16, 2025
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