Sensex jumped 383 points to close at 74,650, while Nifty 50 gained 101 points to end the session at 23,484. This came as India VIX, which measures volatility in markets, tumbled more than 7% to 15.32.
TCS shares rallied nearly 7% to lead gains on Sensex, while Infosys shares jumped more than 5%. HCL Technologies shares meanwhile surged over 4%. On the other hand, NTPC, Axis Bank, Power Grid, Bajaj Finserv and others fell up to 3% to lead losses.
The optimism was broad-based, with Nifty Midcap 100 and Nifty Smallcap 100 indices also closing in the green. Sectorally, Nifty IT led gains with a 4% jump. Nifty Pharma meanwhile fell around 1%. Nearly 2,034 stocks advanced on NSE, while 1,285 declined and 107 remained unchanged.
“Markets recovered from initial losses, led by gains in the IT sector, while continued accumulation in large-cap stocks reflected comfort with valuations, as the Nifty 50 trades closer to its long-term averages than the relatively richer valuations in broader markets,” said Vinod Nair, Head of Research, Geojit Investments. He added that despite ongoing delays in a Middle East truce, global sentiment remained stable, highlighting resilience in risk appetite. With the earnings season largely concluded, investor focus has shifted to key macro factors including monsoon progress, inflation trends, RBI policy, and liquidity conditions, he added.
“The monsoon is expected to advance into southern regions this week, providing near-term sentiment support. While rainfall is projected to be below the long-period average and emerging El Nino risks warrant monitoring, healthy reservoir levels, well above the 10-year average, offer a cushion against potential shortfalls,” according to Nair.
The sharp optimism on Dalal Street came as global stocks rallied, buoyed by fresh AI optimism after Anthropic moved towards a US stock market listing, while oil prices and bond yields fell on renewed hopes of a US-Iran deal. Brent crude futures dropped more than 1% to $94 a barrel after US President Donald Trump said talks with Iran were ongoing.Anthropic on Monday said it has confidentially filed for a US initial public offering.. Google parent Alphabet is also seeking to raise $80 billion in equity to fund the expansion of its AI infrastructure.
Foreign investors meanwhile remained net sellers of Indian equities, net selling shares worth nearly Rs 3,912 crore on Dalal Street on Monday. This came after a massive Rs 22,102 crore selloff in just one session on May 29.
Notably, South Korea’s equity market has overtaken India’s as the world’s sixth largest, driven by a relentless surge in chip heavyweights powering the global artificial intelligence buildout.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
