On a day when the half of the Asian markets were closed due to holidays, the Indian benchmark indices started the week on a strong note, supported by falling crude oil prices and a weak dollar. Extending gains for the second session, the Sensex closed higher at 80,796.84, rising 294.85 points, or 0.37%, while the Nifty ended at 24,461.15, up 114.45 points, or 0.47%. The broader indices outperformed the benchmarks, with the BSE Midcap and BSE Smallcap rising by 1.45% and 1.23%, respectively.
On Monday, Brent crude oil prices fell by 4.55%, dropping below $60 per barrel to $58.50, after OPEC+ agreed to a further increase in output over the weekend, boosting global supplies. The dollar index was trading lower by 0.38% at 99.64.
Shares of Adani Group firms were in strong demand following reports that group representatives met with Trump administration officials to discuss the potential scrapping of a case alleging bribery. The group’s market capitalisation surged by Rs 72,340 crore as shares of the group rose by up to 11%. The group’s flagship, Adani Enterprises, jumped 7% to Rs 2,452.70.
Barring the banking sector, all sectoral indices ended in the green. Services, oil and gas, auto, consumer discretionary, and utilities were the top performers, rising by up to 2.99%. Banking shares faced selling pressure, as SBI and Kotak Mahindra Bank declined following weak Q4 earnings.
The market breadth remained positive, with 2,562 gainers compared to 1,460 losers on the BSE. Overall, investors gained Rs 4.7 lakh crore in market capitalisation.
In Asia, markets in China, Hong Kong, Japan, South Korea and Thailand were closed. Singapore and Indonesia recorded marginal gains, while Taiwan, the Philippines and Malaysia fell by up to 1.23%.
“As most Asian markets were shut, local investors traded with caution, with selective bullish bets seen across sectors, barring banks. FIIs have been steadily buying into local equities over the past few weeks, which is encouraging for Indian markets despite the uncertainty surrounding global tariffs and geopolitical tensions,” said Prashanth Tapse, senior VP (research), Mehta Equities.
“Markets started the week on a firm footing, lifted by steady foreign inflows and optimism around an impending India-US trade deal. Gains were broad-based, with small- and mid-caps outperforming, and most sectors ending in the green,” said Vikram Kasat, head – advisory, PL Capital. The strength in Asian currencies and easing global trade tensions contributed to the positive sentiment, even as activity remained muted in some global markets due to holidays, he added.