Indian benchmark indices Sensex and Nifty rose nearly 1% on Monday, reflecting a strong recovery in the market sentiment. The upward momentum was driven by gains in oil and IT stocks, a return to buying, and a rebound in global equities. Easing crude oil prices, despite ongoing tensions in West Asia, supported the rally and raised hope for sustained growth.
Sensex and Nifty Rally Amid Positive Cues
The Sensex jumped 677.55 points or 0.84% to close at 81,796.15. At its highest during the day, it surged by 747.22 points to 81,865.82. The broader Nifty rose by 227.90 points or 0.92% to settle at 24,946.50.
Geopolitical Developments Ease Investor Concerns
“Global markets often behave contrary to expectations. The escalation between Israel and Iran initially led to a spike in crude oil and safe-haven buying. However, the lack of direct supply disruptions, especially through the Strait of Hormuz, helped stabilise crude prices,” said Harshal Dasani, Business Head at INVasset PMS.
He further explained that inflation worries have cooled and investors are refocusing on strong domestic fundamentals. “Geopolitical risks tend to get priced in early. With worst-case scenarios now ruled out, markets are bouncing back. Investors are rotating capital into sectors like energy, power, defence, and capital expenditure — sectors that are less exposed to external shocks.”
Earnings, Fed Policy Support Market Mood
Dasani also stressed that healthy corporate earnings, fading recession worries, and a stable US Fed policy outlook were boosting buying sentiment. “This has encouraged a buy-on-dips approach, reflecting greater confidence in the market’s trajectory.”
Conflict Impact Limited, Investor Outlook Positive
Chirag Mehta of Quantum AMC told Moneycontrol that the key risk remained whether the Israel-Iran conflict escalates into a wider war. “If the conflict stays restricted, the market typically moves forward and focuses back on fundamentals. We’ve seen this pattern over the last few years.”
Support from Global Markets
Supportive signals from abroad also contributed to the rally. South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng all closed higher. European stocks were trading in the green, while US stock futures were up around 4:30 pm IST.
Monday’s rise in Sensex and Nifty underscores a return to optimism in markets following a brief geopolitical shock. The combination of strong earnings, stable policy signals, and supportive global trends suggests investors are poised to pursue opportunities in sectors less prone to external upheaval.
