Sensex and Nifty surge over 1% as IT stocks and easing crude lift markets

Indian equities staged a vigorous rebound on Monday, with benchmark indices jumping more than 1% as a sharp rally in technology counters and softening global crude prices brought relief to Dalal Street after recent sessions of consolidation.

The BSE Sensex advanced to settle at 72,472, climbing over 870 points from its morning lows, while the NSE Nifty 50 pushed past the 22,500 threshold to close around 22,520, up roughly 288 points. The turnaround wiped out early-morning weakness, where indices had briefly slipped into the red around 10:15 AM as traders navigated conflicting global cues before domestic buying gathered pace.

What triggered the rebound on Dalal Street

The recovery was anchored by a turnaround across major heavyweights, supported by cooling crude oil prices that ease import pressures on the wider economy. Technology counters led the charge, bouncing back strongly after recent pressure, while sectors such as automobiles and metals held onto solid gains of over 1%.

On the Bombay Stock Exchange and National Stock Exchange, broader market indices mirrored the positive sentiment. The Nifty Midcap 100 and Nifty Smallcap 100 traded firmly in positive territory, rising up to 1%. Market breadth across the NSE remained distinctly favourable, clocking 2,177 advancing stocks against 930 declines.

Among prominent gainers across the session were Tata Steel, Trent, Bharat Electronics Limited, Mahindra & Mahindra, Bajaj Finance, Power Grid, and NTPC, all advancing by up to 2%. While counters like Tech Mahindra experienced initial morning drag, selective buying across IT and index leaders helped cement the broader recovery as trading progressed.

Strong domestic fundamentals support sentiment

The session highlighted the resilience of India's capital markets against external volatility. High United States bond yields and intermittent foreign institutional investor (FII) selling have weighed on emerging markets, but steady absorption by domestic institutional investors (DIIs) has provided structural stability to equity benchmarks.

Analysts noted that the recent market correction has brought valuations into attractive territory across several core segments. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, observed that despite external headwinds dominating global headlines, India's robust domestic trajectory provides durable fundamental support. He pointed to an estimated GDP growth projection of 7.1% alongside improving corporate balance sheets as key pillars that encourage value accumulation for medium- and long-term investors.

Technical outlook for Nifty

Technical analysts see the reclaim of key levels as an encouraging signal for market stability. According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the 22,330 to 22,350 band serves as immediate support for the Nifty 50, safeguarding the index against extended downside.

On the upside, chartists point to the 22,660 to 22,680 area, aligning near the 10-day exponential moving average, as the near-term resistance zone. A sustained breakout above that band could trigger further short covering, opening the path towards 22,820 if domestic liquidity momentum persists.