• Source:JND

Stock Market Today: The domestic equity indices settled sharply higher on Monday after a highly volatile session. The rally came in after investors did some value buying post-massive decline last week. BSE Sensex ended the session with a gain of 938.93 points or 1.26 per cent to 75,502.85. While Nifty50 settled at 23,408.80, up 257.70 points or 1.11 per cent.  

Ultratech Cement, Trent, HDFC Bank, Mahindra And Mahindra, Eternal, Bajaj Finance, ITC, Tata Steel, SBI, Bajaj FinServ, ICICI Bank, Axis Bank were the top gainers from the Sensex basket. BEL, SunPharma, PowerGrid, Bharti Airtel, and NTPC trade lower. 

Sector-wise, the market showed a mixed performance, with selected rotation, automobile, financial, consumer and FMCG stocks up more than 1%, supporting the recovery of the benchmark indices. On the other hand, oil and gas and real estate stocks were under pressure, reflecting cautious sentiment around energy-related sectors and rate-sensitive sectors.

Key Factors Behind Market Rally Today

According to analysts, the market witnessed a highly volatile session, where early selling pressure gradually gave way to a strong recovery in the latter half of the day. 

"After opening with a mild sell-off, the market managed to regain momentum and closed in positive territory, suggesting that buyers are slowly returning after the recent phase of consolidation. A notable development during the session was the decline in India VIX by nearly 4%, indicating a moderation in market volatility and a temporary easing of investor nervousness," said Ponmudi R, CEO of Enrich Money.

Crude Passage Through Hormuz 

Meanwhile, rising crude oil prices remain a concern for India, given its heavy dependence on energy imports, and any sustained increase in oil prices could widen the current account deficit and place pressure on inflation. 

In this context, India’s discussions with Iran to ensure the safe transit of LPG tankers have given a boost to the investors during the session, underlining the strategic importance of maintaining stable energy supply routes.

"In the commodities segment, crude oil edged higher by around 1%, while natural gas declined close to 1%, indicating that energy markets are currently trading in a consolidation phase with much of the geopolitical risk already partially priced in," Ponmudi said. 

Value Buying 

The equity market rebounded in the last session, supported by price buying in domestic-based sectors like auto, banking and FMCG, which provided relief after the recent sell-off.

"Near-term challenges persist, valuations have moderated, narrowing the premium valuation gap across several key sectors. In the near term, investor sentiment will hinge on developments in the Strait of Hormuz, where any easing of supply chain disruptions could provide further support," said Vinod Nair, Head of Research, Geojit Investments Limited. 

According to Nair, however, persistently elevated oil prices continue to weigh on broader market direction. Globally, attention remains focused on the upcoming U.S. Fed policy outcome. 


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