Sensex Jumps Over 600 Points, Nifty Tops 24,580 as Falling Crude Lifts Sentiment

Indian equities started the new week on a strong footing, with bulls retaining control through the afternoon session on Monday. As of 12:14 PM IST, the Sensex was trading at 78,760.10, higher by 665.46 points or 0.85 per cent, while the Nifty 50 climbed 212.60 points or 0.87 per cent to 24,596.20. Softer crude oil prices and hopes of progress in US-Iran negotiations improved risk appetite.

Buying was not restricted to heavyweight stocks. The Nifty Midcap index was up 0.87 per cent, while the Nifty Smallcap index had gained 1.29 per cent, indicating stronger participation in the broader market. Banking stocks also remained positive, with public sector lenders attracting relatively stronger buying interest.

Among sectoral indices, Nifty PSU Bank, Nifty FMCG and Nifty Metal were the key outperformers. PSU banks extended their winning run for the fourth consecutive session, led by stocks such as SBI, Bank of Baroda and Union Bank of India. Nifty Media, however, lagged the market and remained the notable underperformer during the session.

The sharp fall in crude provided support to oil-sensitive sectors as Brent crude slipped more than 6 per cent to around USD 82.4 per barrel after hopes emerged of a diplomatic breakthrough in West Asia.

Urban Company was among the biggest movers, surging nearly 15 per cent to Rs 148.20 after its Q1 revenue jumped 43.9 per cent year-on-year to Rs 528 crore. Zee Entertainment moved in the opposite direction, tumbling around 12 per cent after Sebi's regulatory action against senior company officials.

IdeaForge Technology gained as much as 2.73 per cent to Rs 899 after receiving in-principle approval for funding of up to Rs 151 crore for its autonomous aerial Logistics vehicle project. ITC was also among the leading Nifty gainers following its Q1 results.

The latest available institutional data showed FIIs bought Indian equities worth Rs 277 crore on Friday, July 31, extending their buying streak to four sessions. DIIs were net buyers of Rs 2,260 crore.

Global cues were mixed. Wall Street ended Friday higher, with the Dow gaining 0.53 per cent, the S&P 500 rising 0.70 per cent and the Nasdaq advancing 1 per cent. Asian markets were weaker on Monday, with South Korea's Kospi and Japan's Nikkei under pressure.

The 24,600 zone remains the immediate hurdle for the Nifty. A sustained move above this level could open the way towards 24,800 to 25,000, while 24,270 is the immediate support. Investors will also closely track the RBI monetary policy decision due on Wednesday along with crude oil prices and Q1 earnings.

The current setup remains positive, but developments around West Asia, oil prices and the RBI policy could keep Intraday volatility elevated.

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