Nifty Near 25,000, Sensex Rises Over 800 Points From Day's Low— Key Drivers Behind Advance

The benchmark indices rose nearly 1% after posting a negative start on Monday. Nifty rose near 25,000 levels while Sensex was up more than 800 points, despite heightened concerns due to the Israel-Iran war. The broader segment of the market was also positive, as the NSE Nifty Midcap 150 was rising 0.08% and the NSE Nifty Smallcap was up 0.49%.

“Our recent experience with wars is that most conflicts last a short period, barring Ukraine,” Samir Arora, Founder and Fund Manager at Helios Capital, told NDTV Profit.

The markets were dragged by Nifty IT and Nifty Metal.

"On the upside, a break above 24,750/81,300 could extend the pullback move up to 24,850/81,600. Further gains may also continue, lifting the market toward 24,950–25,000/81,900–82,100," said Shrikant Chouhan, Head Equity Research, Kotak Securities.

During the open, Nifty 50 was at 24,732.35, while Sensex opened lower at 81,034.45. However, later in the day, Nifty was up 1% to 24,966.65, while Sensex rose 747.22 points to 81,865.82 levels.

HDFC Bank Ltd. and Infosys Ltd. led the gains on Monday.

The volatility index VIX fell 2.19% to 14.80 on Monday.

Global Cues

US futures rose as investors anticipate that the conflict between Israel and Iran will not draw in more parties. European and Asian stocks were also trading in the green.

S&P 500 futures and Nasdaq 100 futures were both up 0.6%, while futures on the Dow Jones Industrial Average was up 0.4%. South Korea's Kospi rose 1.80%, or 52.40 points, to 2,946.66 while Australia's S&P / ASX 200 was up 0.01% at 8,548.37 as of 2:07 p.m. Markets in Japan were also in the green on Monday, while the Hang Seng was up 0.70%.

According to Arora, unless the US is directly involved or Iran escalates significantly, the market is unlikely to react beyond short-term volatility. “There is no point in panicking over the next few days,” he said.

Oil

Brent crude prices on Monday initially rose as much as 5.5% after a weekend of attacks but quickly pared most of that move to turn negative. Brent crude – the global benchmark for crude oil – fell 0.38% to $73.95.

The Brent crude had slipped below $59 in May, the lowest level since February 2021. In the last two months crude prices have tumbled to four year low amid US President Donald Trump's tariff wars. However, with the flare in tensions oil had jumped over 13% on Friday.