Domestic equities rebounded on Monday, snapping a three-session losing streak, led by gains in Reliance Industries and Sun Pharmaceutical Industries. Sentiment was also buoyed by reports of Iran proposing to reopen the Strait of Hormuz.
The benchmark Sensex rose 639 points, or 0.8 per cent, to close at 77,304, while the Nifty 50 gained 195 points, or 0.8 per cent, to settle at 24,093. The total market capitalisation of BSE-listed firms increased by ₹6.6 trillion to ₹468 trillion.
Heavyweights drove much of the rally. Reliance Industries advanced 2.9 per cent, recouping losses from the previous two sessions. Sun Pharmaceutical Industries surged 7.03 per cent — its sharpest single-day gain since July 2021 — after announcing the acquisition of US-based Organon.
Global cues added to the positive momentum. Reports indicated that Iran has signalled willingness to accept an interim arrangement to reopen the Strait of Hormuz in exchange for easing of US restrictions on its ports. The proposal also includes extending the ceasefire and deferring discussions on its nuclear programme.
While a ceasefire between the US and Iran remains in place, disruptions in the Strait of Hormuz — a key artery for global oil trade that handles nearly a fifth of the world’s supply — have kept energy prices elevated. Brent crude hovered around $100 per barrel, up 0.3 per cent. Elevated oil prices remain a key risk for India, given its heavy reliance on imports.
“Markets are likely to maintain a gradual uptrend, supported by hopes of a resolution, favourable global cues, and stock-specific triggers driving broader participation. Renewable energy, metals, and mining stocks could remain in focus, alongside summer-driven demand plays such as air conditioners, fans, cold beverages, packaged water, and power equipment,” said Siddhartha Khemka, head of research, wealth management, at Motilal Oswal Financial Services.
Broader markets outperformed the benchmarks, with the Nifty Midcap 100 rising 1.5 per cent and the Nifty Smallcap 100 advancing 1.9 per cent. All sectoral indices ended in the green. The Nifty Pharma index led gains, up 2.6 per cent, followed by Consumer Durables, which rose 2.53 per cent.
The Nifty IT index climbed 2.2 per cent after a recent 5.3 per cent decline triggered by subdued growth outlooks from sector majors. Market breadth remained strong, with 3,023 stocks advancing against 1,345 declines.