Closing Bell: Nifty 50 Climbs to 5-Month High on Brent Crude Slump, IT Stocks Lead Gains

Indian equity benchmarks ended sharply higher on Monday, with the Nifty 50 and Sensex closing at their highest levels in five months. The rally was supported by a sharp decline in Brent crude oil prices, encouraging corporate earnings, resilient monthly auto sales and strong buying in information technology stocks.

The Nifty 50 opened at 24,572.70 and slipped to an Intraday low of 24,515.15 during early trade before witnessing steady buying interest. The index recovered throughout the session and closed near the day's high, indicating sustained bullish momentum. The move above the 24,600 level has strengthened the technical outlook, with market participants now looking for follow-through buying in the coming sessions.

The Nifty 50 ended the session at 24,774.30, rising 390.70 points, or 1.6 per cent. The benchmark has now gained for four consecutive trading sessions and recorded its biggest single-day advance in the last seven weeks. The Sensex climbed 544.39 points, or 0.70 per cent, to settle at 78,639.03. The Bank Nifty outperformed the benchmark indices, advancing 1.72 per cent, while India VIX rose around 2 per cent to remain close to the 12 mark.

Market sentiment received a boost after Brent crude prices dropped 5.1 per cent to USD 83.4 per barrel after U.S. President Donald Trump said talks with Iran would take place on Monday but did not specify a deadline for an agreement. However, crude pared some losses during the day and was trading around USD 87 per barrel by 3:24 p.m.

The broader market also remained strong. The Nifty Midcap 100 index gained 1.21 per cent to hit a record high, while the Nifty Smallcap 100 index advanced 1.29 per cent to its highest level in nearly 20 months.

Sectoral performance remained broadly positive, with 10 of the 11 major sectoral indices ending in the green. The Nifty IT index surged 3.28 per cent as investors continued accumulating technology stocks following encouraging June quarter earnings, improving deal momentum and renewed optimism after the sector's correction earlier this year. In contrast, the Nifty Media index declined 3.09 per cent after a three-session rally, making it the only sectoral loser and recording its biggest intraday decline in the last four months.

Among individual stocks, ITC gained 2.14 per cent despite reporting a decline in June quarter profit, as investors focused on stronger-than-expected cigarette volumes. Divi's Laboratories jumped 6.57 per cent after posting higher quarterly profit, while Urban Company rallied 12.98 per cent after reporting a 44 per cent increase in first-quarter revenue. On the other hand, Zee Entertainment Enterprises plunged 14.33 per cent after the Securities and Exchange Board of India imposed a combined fine of Rs 14.8 million on the company, its chief executive and chairman emeritus. The regulator also barred Chief Executive Officer Punit Goenka and founder Subhash Chandra from the securities market for one year over securities law violations.

ICICI Bank, Infosys and Axis Bank emerged as the biggest contributors to the Nifty 50's gains, adding 38.45 points, 38.13 points and 26.65 points, respectively. Meanwhile, Sun Pharmaceutical Industries, Apollo Hospitals Enterprise and Maruti Suzuki India were the top drags on the benchmark index, reducing it by 6.37 points, 3.08 points and 2.38 points, respectively.

Market breadth remained firmly positive on the NSE. Out of 3,505 stocks traded, 2,360 advanced, 1,027 declined and 118 remained unchanged. As many as 154 stocks touched their 52-week highs, while 34 hit fresh 52-week lows. Additionally, 154 stocks were locked in their Upper Circuits, whereas 79 stocks were locked in their Lower Circuits.

Disclaimer: The article is for informational purposes only and not investment advice.