Share Markets Close On A High Driven By IT, Pharma Stocks: Sensex Over 600 Points Up, Nifty Near 24,100
Investor sentiment remained closely tied to developments in West Asia, particularly the evolving US-Iran situation and its impact on energy markets.
- Indian equities rally, Nifty nears 24,100, Sensex surpasses 77,300.
- Sun Pharma's massive acquisition boosts pharma sector gains.
- Broader markets and IT, realty, pharma sectors outperform.
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.
Sun Pharma, Reliance Lead Gains
Among Sensex constituents, Sun Pharmaceutical Industries surged 7 per cent after announcing its acquisition of US-based Organon & Co in an all-cash deal valued at $11.75 billion, one of the largest overseas acquisitions by an Indian company.
Reliance Industries rose 2.88 per cent, while Adani Ports, Tech Mahindra, Mahindra & Mahindra, NTPC, HCL Tech and Tata Consultancy Services were also among the major gainers.
On the other hand, Axis Bank, Bharat Electronics, Trent and ICICI Bank ended lower.
Broad-Based Buying Across Sectors
The rally was underpinned by buying in beaten-down large-cap stocks, particularly Reliance, along with strength in pharmaceutical shares following global deal activity.
Ajit Mishra, SVP, Research at Religare Broking Ltd, said improved sentiment was also supported by optimism around potential progress in US-Iran negotiations, even as crude oil prices remained elevated.
Market breadth remained positive, with 3,075 stocks advancing, 1,288 declining and 193 remaining unchanged on the BSE.
Midcaps, Smallcaps Outperform
Broader markets outperformed the benchmarks, with the BSE SmallCap Select index rising 2 per cent and the MidCap Select index gaining 1.35 per cent.
All sectoral indices closed in positive territory. Utilities led the gains with a 2.50 per cent rise, followed by Healthcare (2.43 per cent), Focused IT (2.41 per cent), Realty (2.35 per cent), IT (2.20 per cent), Power (2.05 per cent) and Services (1.92 per cent).
Global Cues Support Sentiment
Global market trends remained supportive. Asian markets ended mostly higher, with gains in South Korea’s Kospi, Japan’s Nikkei 225 and China’s SSE Composite, while Hong Kong’s Hang Seng closed lower. European markets were trading in the green, and US markets had ended mostly higher on Friday.
Hariprasad K, Research Analyst and Founder of Livelong Wealth, said improving global sentiment, particularly reports of a potential de-escalation in tensions between the US and Iran around the Strait of Hormuz, helped ease concerns over supply disruptions and boosted risk appetite.
He added that sectoral participation, especially in pharma and IT stocks, played a key role in sustaining the rally.
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.
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