Indian equity benchmarks ended higher on Monday after a volatile session, supported by gains in broader markets and optimism around easing geopolitical tensions in West Asia.
The NSE Nifty50 rang the closing bell near 24,100, climbing almost 200 points, while the BSE benchmark, Sensex, rallied more than 600 points to settle the session above 77,300. Buying interest in select sectors helped offset pressure from financial stocks.
After opening on a firm note, markets witnessed some profit booking during the day, trimming early gains. However, benchmarks managed to hold on to positive territory till the close.
At mid-session, indices had pared gains due to weakness in select heavyweights, particularly in the financial space. Stocks such as Axis Bank, ICICI Bank, and Shriram Finance weighed on the benchmarks after initial strength.
Oil Prices Ease Slightly On Diplomatic Hopes
In the commodities space, crude oil prices trimmed some of their gains during the day.
This followed reports suggesting that Iran may have reached out to the United States with a fresh proposal aimed at reopening a key global supply route, offering some relief to global markets.
Brent crude was still trading above $106 per barrel, reflecting continued concerns around supply disruptions.
Geopolitics Remain Key Market Driver
Investor sentiment remained closely tied to developments in West Asia, particularly the evolving US-Iran situation and its impact on energy markets.
While hopes of de-escalation supported risk appetite, uncertainty around the outcome of negotiations kept volatility elevated throughout the session.
Markets found support from improved global cues and optimism around potential diplomatic progress, strong participation in mid and small-cap segments, and sectoral strength in realty, IT, and pharma. However, gains were capped by selling pressure in banking and financial stocks, and elevated crude oil prices and macro concerns.
Markets are expected to remain volatile and news-driven in the near term.
Key factors to watch include developments in US-Iran negotiations, movements in crude oil prices, and ongoing Q4 earnings announcements. While any progress on the geopolitical front could support sentiment, persistent uncertainty may lead to intermittent profit booking.
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