Markets Rebound Big! Sensex Climbs 776 Points, Nifty Ends Five-Day Losing Streak

Indian equity markets staged a strong comeback on Monday, snapping a five-session losing streak as a sharp fall in global crude oil prices boosted investor sentiment. Easing geopolitical tensions in West Asia reduced concerns over inflation and higher import costs, triggering broad-based buying across sectors.

The BSE Sensex surged 776.01 points, or 1.02 per cent, to close at 76,835.78 after climbing as much as 841.74 points during intra-day trade. The NSE Nifty50 also ended its recent losing run, rising 228.50 points, or 0.96 per cent, to settle at 23,995.95.

The rally was driven largely by a sharp decline in Brent crude oil prices, which plunged 9.40 per cent to USD 87.64 per barrel. Lower crude prices are generally viewed as positive for India, one of the world's largest oil importers, as they help reduce import bills, ease inflationary pressures and improve the country's fiscal outlook.

Among the biggest gainers on the Sensex was Eternal, which climbed 5.70 per cent. Other major winners included InterGlobe Aviation, Infosys, Bajaj Finance, Asian Paints and Mahindra & Mahindra, reflecting strong buying interest across aviation, IT, financial and automobile stocks.

However, not all stocks participated in the rally. HDFC Bank, Power Grid and Axis Bank finished lower, limiting some of the broader gains.

Market experts attributed the rally to improving global cues. According to analysts, the pause in hostilities in West Asia has eased fears of supply disruptions and rising energy costs. The fall in long-term bond yields has further strengthened hopes that economic conditions could remain supportive for equities.

Despite Monday's sharp rebound, Foreign Institutional Investors (FIIs) remained cautious, having sold equities worth Rs 3,892.77 crore in the previous trading session.

Global sentiment also remained positive, with major Asian markets including Japan, South Korea, China and Hong Kong ending higher. European markets traded in the green, while US markets had closed mostly higher, providing additional support to Indian equities.

The day's gains marked a significant turnaround after Friday's decline, when benchmark indices had extended their losing streak amid global uncertainty.