Stock Market Opens Strong; Sensex Surges Over 800 Points, Nifty Tops 25,200

Indian benchmark indices, the Sensex and Nifty, opened on a strong note on Monday, with both indices showing robust gains. The BSE Sensex surged 804.36 points, or 0.98 per cent, to start the session at 82,701.15, while the Nifty opened at 25,239.50, up 267.60 points or 1.07 per cent, lifted by positive global sentiment and optimism over easing tensions in the Middle East.

Oil prices tumbled in early Asian trade, with West Texas Intermediate (WTI) crude futures for August plunging as much as 5.1 per cent to $65.02 per barrel, falling below levels seen before the June 12 Israel-Iran conflict. Brent crude also dropped sharply, sliding 8 per cent overnight after reports confirmed that Iran’s strikes on US bases in Qatar were coordinated and resulted in no casualties.

Sectorial Update

Sectoral indices reflected broad-based market strength, with most trading in the green. Leading the charge was the Nifty PSU Bank index, which rose 1.74 per cent, followed by Nifty Auto and Nifty Infra, up 1.33 per cent and 1.19 per cent, respectively. Banking majors supported the rally as well, with Nifty Bank and Nifty Private Bank gaining over 1 per cent each. Other sectors like Nifty IT, Metal, FMCG, and Consumer Durables posted gains ranging from 0.85 per cent to 1.10 per cent.

Broader Market Update

The broader market also showed resilience, with both Nifty Midcap 100 and Smallcap 100 advancing 0.92 per cent each. Meanwhile, India VIX—a gauge of market volatility—eased 4.13 per cent to 13.47, suggesting calmer investor sentiment.

Anand James, Chief Market Strategist, Geojit Investments, noted, "Despite the volatility and the pull back towards close, the inside bar formation yesterday leaves us with hope that the ongoing upside trajectory may persist. Momentum continues to be absent, but the 25,200-460 objective looks possible nevertheless. The 24,825 region from where we had anticipated a swing higher yesterday, will continue to be a key support, but we prefer to push the downside marker to 24,940."

Previous Trading Session

In the previous trading session on Monday, benchmark indices trimmed early losses but still closed lower by over half a per cent, as rising geopolitical tensions in the Middle East pressured equities, particularly those linked to crude oil, amid concerns over supply disruptions through the Strait of Hormuz, with oil prices holding above $78 per barrel. The Nifty 50 ended below the psychological 25,000 mark.

Markets opened with a gap-down and extended their slide during the early session. However, a late rebound in metal stocks and strength in the small- and mid-cap segments helped pare some losses. By the close, the Sensex had declined 511.38 points or 0.62 per cent to finish at 81,896.79, while the Nifty fell 140.50 points or 0.56 per cent to settle at 24,971.90. Broader markets outperformed, with the BSE Midcap index up 0.2 per cent and the Smallcap index advancing 0.6 per cent.

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