- Indian equities rebounded strongly, ending five-session losing streak.
- IT stocks led broad rally amidst easing geopolitical tensions.
- Strong earnings reports propelled specific stocks higher.
Indian equity benchmarks staged a strong rebound on Monday, ending a five-session losing streak as investors returned to equities amid easing geopolitical tensions, a sharp decline in crude oil prices and renewed buying in information technology stocks.
The BSE Sensex ended the session above 76,800, soaring more than points, while the NSE Nifty50 climbed 229 points to settle just under 24k.
The rally was broad-based, with gains extending beyond benchmark indices to mid-cap and small-cap stocks, while positive global cues further strengthened market sentiment.
Market breadth remained firmly positive throughout the day, reflecting healthy participation across sectors, with advancing shares comfortably outnumbering decliners.
The recovery also extended to the broader market. The Nifty Midcap index rose 1.10 per cent, while the Nifty Smallcap index advanced 1.23 per cent. Meanwhile, Nifty Bank climbed back above the 57,000 mark, although banking stocks lagged the gains seen in technology counters.
IT Stocks Lead Market Recovery
Technology shares emerged as the biggest contributors to Monday’s rally.
The Nifty IT index surged 2.52 per cent, with all constituent stocks trading in positive territory. Improved valuations following the recent correction, quarterly earnings that were stronger than market expectations and a sector upgrade by brokerage Jefferies, which revised its stance on Indian IT to ‘neutral’ from ‘underweight’, helped lift investor confidence.
Realty and media stocks also witnessed healthy buying interest. The Nifty Realty index gained 1.78 per cent, while the Nifty Media index rose 1.50 per cent, supported by gains in PVR INOX, Zee Entertainment and Saregama India.
On the other hand, Nifty PSU Bank edged marginally lower, while the Energy and Metal indices posted relatively modest gains compared with the broader market.
Earnings Drive Stock-Specific Action
Several companies witnessed sharp moves following their quarterly earnings announcements.
IDFC First Bank rallied around 7 per cent after reporting a 132.4 per cent year-on-year jump in first-quarter profit to Rs 1,075 crore, its highest-ever quarterly earnings.
DCB Bank climbed as much as 10 per cent after posting a record quarterly profit of Rs 213 crore, representing a 36 per cent increase from a year earlier.
Infosys gained more than 3 per cent, benefiting from renewed buying interest in the IT sector.
In contrast, Zen Technologies fell around 6 per cent after reporting a 28 per cent decline in quarterly profit and a 10 per cent drop in revenue.
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Global Cues Support Investor Sentiment
International developments also aided domestic markets.
Crude oil prices declined sharply after the United States and Iran paused military strikes, easing concerns over potential supply disruptions. Brent crude traded around 4.4 per cent lower at approximately $92.5 per barrel, improving risk appetite across global markets.
Asian equities also traded higher, while the US Dollar Index hovered near 101.21 as demand for traditional safe-haven assets moderated.
FIIs Continue Selling, DIIs Extend Support
Institutional trading data for Monday will be released after market hours.
According to the latest provisional exchange figures available for July 24, foreign institutional investors (FIIs) remained net sellers, offloading equities worth Rs 3,892.77 crore. In contrast, domestic institutional investors (DIIs) continued to provide support, purchasing shares worth Rs 5,453.55 crore.
Focus Shifts To Earnings And Global Developments
Investors will now closely monitor the ongoing corporate earnings season, developments surrounding the United States-Iran situation and the upcoming US Federal Reserve policy decision, all of which are expected to influence market direction in the coming sessions.
From a technical perspective, analysts expect 24,070-24,090 to act as the immediate resistance zone for the Nifty, while support is seen around 23,820-23,840.
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