Mumbai (Maharashtra): Indian equity markets ended higher on Monday, with FMCG, energy and banking stocks driving the recovery. The market was also supported by positive global cues with Brent crude offering some relief on the inflation front. 

Sensex closed at 72,382.47, up 472.77 points or 0.66 per cent against the previous close of 71,909.70. Nifty settled higher at 22,555.75, up 133.80 points or 0.60 per cent against the previous close of 22,421.95

All broad market indices ended in the green. Amongst the sectoral indices, FMCG emerged as the top gainer, settling at 1.67 per cent, followed by telecom, consumer durables, and financial services. On the other hand, Nifty Healthcare emerged as the top laggard. 

On BSE, ITC, Eternal, Bajaj Finance, ICICI Bank, Adani Ports, Reliance, Bharti Airtel, TCS, LT, Titan, NTPC, Maruti, Axis Bank, Power Grid among others were the top gainers. HCL Tech, Asian Paint,  HDFC Bank, Sun Pharma, Infosys, BEL, Tech Mahindra among others were the top drags. 

Likewise, on NSE, ITC, BSE, TMPV, Bajaj Finance, Adani Ports, NTPC, Eternal, Reliance, ICICI Bank, Bharti Airtel, TCS, ONGC, Power Grid, Axis Bank, SBIN, Bajaj Finserve among others were the top gainers. HCL Tech, Max Health, Cipla, Sun Pharma, Infosys, Apollo Hospital, Asian Paint, Kotak Bank, Tata Steel, JSW Steel among others were the major laggards. 

Ajit Mishra, SVP, Research, Religare Broking Limited noted, “Markets witnessed a strong recovery on Monday, taking a breather from the recent corrective trend and gaining over half a percent. After a gap-up opening, the benchmark indices remained in a range through the session and eventually held on to most of their gains. The Nifty reclaimed the 22,500 mark, while the Sensex settled around the 72,300 level.”

Mishra noted, FMCG, energy and banking led the recovery, supported by strength across select counters following positive quarterly business updates. 

“Pharma and IT lagged after their recent phase of relative outperformance. The broader market also participated in the recovery, with both midcap and small-cap indices gaining nearly half a percent each,” he said. 

As per Mishra, “Global cues turned relatively supportive as crude oil prices eased from recent highs, with Brent hovering around USD 102 a barrel, providing some relief on the inflation front. Softer-than-expected US jobs data also reduced expectations of aggressive monetary tightening by the US Federal Reserve, supporting risk appetite across emerging markets.”

In the commodity market, Brent crude was trading at around USD 102.59 per barrel while crude oil was trading at around USD 90.58 per barrel at the time of reporting.

However, “the US 10-year Treasury yield remains elevated, while the rupee continues to hover above the Rs 96 per dollar mark. Persistent foreign selling also remains a key overhang,” he noted. 

From a technical perspective, Mishra noted the Nifty has shown signs of a relief recovery after testing the crucial long-term support zone around 22,400–22,600. 

“Going ahead, the 22,650–22,800 zone is likely to act as the immediate hurdle, followed by 23,000–23,200. Although the recent recovery is encouraging and the market remains oversold, the broader trend continues to remain cautious thus the current rebound should be approached selectively, with a preference for stock-specific opportunities rather than aggressive index-level exposure.”

Vinit Bolinjkar, Head of Research, Ventura said, “After eight consecutive weeks of decline — the longest losing streak in 25 years — elevated US bond yields and persistent FII selling remain the dominant overhang.” 

“Expect continued volatility, with the rupee, crude oil prices, and the RBI's rate stance as key swing factors,” he said, adding “Overall, a stock-specific, news-driven market is likely, with broader direction hinging on how global bond yields and RBI's tone evolve through the week.”

Market analyst Vipin Dixena noted, “In my view, today's rebound is important, but I would still treat it as a relief rally rather than a confirmed trend reversal. Lower crude prices and softer-than-expected US jobs data reduced concerns around aggressive US Fed tightening, while positive quarterly updates from banks provided an additional domestic trigger.”

“From a technical perspective, 22,400–22,350 becomes an important immediate support zone for Nifty, while 22,600–22,700 is the first major resistance area. A sustained move above 22,700 would strengthen the case for a deeper technical recovery towards 23,000. On the other hand, failure to hold 22,400 could bring the recent lows back into focus,” he said.