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The NSE Nifty 50 closed above the 24,000 mark at 24,031.70, up 312.40 points or 1.32%.
The NSE Nifty 50 closed above 24,000 for the first time, ending at 24,031.70.
KEY POINTS
PSU banks led sectoral gains, with the Nifty PSU Bank index rallying 2.90%.
Volatility dropped significantly as India VIX fell 6.74% to 16.70, indicating improved investor sentiment.
Market optimism was fueled by optimism around a possible US-Iran deal and easing crude oil prices.
Stabilization of the rupee followed RBI commentary suggesting the INR is currently undervalued.
The NSE Nifty 50 closes above the 24,000 mark at 24,031.70, up 312.40 points or 1.32%, while the BSE Sensex gains 1,073.61 points or 1.42% to settle at 76,488.96.
The domestic equity market ended sharply higher on Monday, with the rally led by banking and financial stocks amid easing crude oil prices and improving global sentiment around the West Asia situation. Strong buying in heavyweight financials, along with gains in autos and realty shares, helped the market extend its rebound.
The NSE Nifty 50 closed above the 24,000 mark at 24,031.70, up 312.40 points or 1.32%, while the BSE Sensex gained 1,073.61 points or 1.42% to settle at 76,488.96. Bank Nifty outperformed the broader market, surging 2.29% to 55,293.65, supported by strong gains in HDFC Bank, ICICI Bank, SBI and Axis Bank.
Among the broader markets, the Nifty Next 50 advanced 1.48%, while the Nifty Smallcap 100 and Nifty Microcap 250 indices climbed 1.37% and 1.59%, respectively, indicating broad-based participation. Midcap indices also ended in the green, though gains remained relatively moderate compared with frontline banking counters.
Sectorally, PSU banks emerged as the top gainers, with the Nifty PSU Bank index rallying 2.90%. Financial Services, Private Banks, Realty and Auto indices also gained between 1.5% and 2.2%. Realty stocks witnessed renewed buying interest after the recent correction, while auto shares remained firm on improving risk appetite.
Defensive pockets remained subdued. The Nifty FMCG index slipped 0.18%, while IT and healthcare stocks underperformed the broader market despite ending marginally higher.
Volatility cooled sharply during the session, with India VIX falling 6.74% to 16.70, reflecting improving investor confidence amid reduced geopolitical anxiety.
Market breadth remained positive as investors lapped up large-cap counters trading at relatively attractive valuations after recent corrections. Financials continued to dominate the rally after strong March quarter earnings, while stabilisation in the rupee also supported sentiment.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “Markets witnessed strong positive momentum, driven by a correction in crude oil prices amid rising expectations of a potential US-Iran deal. Global sentiment improved on reports of progress towards reopening the Strait of Hormuz, although credibility remains uncertain given frequent shifts in developments."
“The rally was led by large caps, supported by relatively attractive valuations versus long-term averages. On the sectoral front, financials outperformed on the back of strong Q4 earnings, while autos remained constructive," he added.
Nair further said that realty stocks also saw renewed interest following the recent sharp correction. “On the macro front, global yields softened modestly, while rupee depreciation appears to have stabilised, aided by RBI commentary highlighting that the INR is undervalued, though it is early to confirm a sustained trend."
He added that sustainability of the current momentum will depend on a credible de-escalation in geopolitical tensions and continued stability in crude oil prices.