However, the broader market remained weak, with declining stocks outnumbering advancing ones by nearly two to one as the US–Iran war entered its third week. Investor sentiment also remained fragile amid rising crude oil prices and concerns over tightening global supplies.
The Nifty 50 rose 1.11 per cent, or 258 points, to close at 23,409, while the Sensex advanced 939 points, or 1.26 per cent, to settle at 75,503. HDFC Bank climbed 2.9 per cent, ICICI Bank gained 1.5 per cent, and Reliance Industries added 1.1 per cent. The three stocks together accounted for nearly half of the indices’ gains.
“The underlying broader trend of the Nifty remains weak and the market is still not out of the woods,” said Nagaraj Shetti, senior technical research analyst at HDFC Securities. “There is a crucial overhead resistance placed around 23,500–23,600 levels and there is a higher possibility of sell-on-rise opportunities near that hurdle. Immediate support is placed at 23,000 levels.”
Broader indices continued to lag the benchmarks. The Nifty Midcap 100 fell 0.3 per cent and the Nifty Smallcap index declined 0.5 per cent. On the BSE, 1,509 stocks advanced while 2,860 declined.
Sectorally, 11 of the 19 indices ended in the red, led by Nifty Oil & Gas and Nifty Realty, which fell 1.6 per cent each. Nifty Auto and Nifty Private Bank were among the top gainers, rising 1.67 per cent and 1.24 per cent, respectively.
Brent crude prices remained elevated at around $105 a barrel after US President Donald Trump threatened to target Iran’s oil export infrastructure on Kharg Island, which handles about 90 per cent of the country’s oil shipments.
Last week, the Sensex had dropped 5.5 per cent—its biggest weekly decline since May 2020—while the Nifty 50 fell 5.3 per cent, marking its sharpest weekly fall since June 2022.
Meanwhile, foreign brokerages Citibank and Nomura cut their year-end targets for the Nifty, citing downside risks to earnings from surging oil prices. Citi lowered its target to 27,000 from 28,500, while Nomura cut its projection to 24,900 from 29,300.
“We think an additional 5 per cent correction, similar to the decline during the Russia–Ukraine war, is a distinct possibility in the near term, with small- and mid-cap stocks at relatively greater risk,” said Saion Mukherjee, MD and Head of India Equity Research at Nomura.
“As our base case, we assume an eventual resolution that ensures supply stability and lower oil prices. Concerns around the impact of AI are also premature and overdone. Therefore, a correction of more than 5 per cent from current levels should present a buying opportunity from a long-term perspective,” he added.
