Indian benchmark indices witnessed a strong upmove on Monday, gaining more than 1 per cent each amid broad-based buying in banking, financials, automobiles and real estate stocks.

The 30-share BSE Sensex pack surged 1,073.61 points or 1.42 per cent to settle at 76,488.96, while the NSE Nifty50 index climbed 312.40 points or 1.32 per cent to close at 24,031.70.

Ajit Mishra, SVP (Research) at Religare Broking, said, "The market witnessed a strong rebound, supported by favourable global cues and easing geopolitical concerns. Sectoral participation remained robust, with rate-sensitive segments such as banking, financials, auto, and realty leading the gains, while FMCG stocks ended largely unchanged. The broader market also participated strongly in the rally, with both midcap and smallcap indices advancing over 1 per cent each, reflecting improved market breadth and stronger risk appetite."

According to Mishra, optimism surrounding a potential US-Iran peace agreement triggered a sharp decline in crude oil prices, boosting sentiment in equity indices.

"Brent crude slipped below the $100 per barrel mark for the first time in over two weeks and gradually inched toward the $95 level. Additionally, the outperformance of private banking majors, supportive earnings announcements, and the rupee's further strengthening against the US dollar aided the recovery. However, investors remained watchful of foreign institutional flows and further developments in the Middle East negotiations," he also said.

Mishra further stated, "Scheduled monthly expiries over the next two sessions and the ongoing earnings season may keep stock-specific volatility elevated. We therefore continue to maintain a positive yet cautious stance, with a focus on stock selection based on prevailing sectoral rotation."

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, also mentioned that the crude prices coming down decisively is a huge positive for the Indian market over the medium- to short-term, adding that as long as Brent remains in the downtrend, domestic benchmarks are going to be beneficiary.

Nifty outlook

"From a technical perspective, immediate support is placed in the 23,750–23,800 zone for Nifty50, while resistance is observed in the 24,150–24,200 range," said Sachin Gupta, VP (Technical Research) at Choice Broking.