The Indian stock market benchmark indices, Sensex and Nifty 50, rallied on Monday, led by gains in banking and metal stocks amid a decline in crude oil prices.
The Sensex traded 975.52 points, or 1.31%, higher at 75,435.05, while the Nifty 50 was up 261.35 points, or 1.13%, at 23,314.00. The Bank Nifty index also gained around half a percent, trading near the 55,000 mark.
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Broader markets participated in the rally, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 0.8% each.
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All sectoral indices traded in the green, with the Nifty Oil & Gas index emerging as the top gainer, rising over 3%. It was followed by the Nifty Consumer Durables, Nifty PSU Bank, Nifty Metal, Nifty Auto, Nifty Realty, Nifty IT and Nifty FMCG indices.
Market sentiment improved following a decline in crude oil prices, with Brent crude falling towards $110 a barrel amid renewed diplomatic efforts to end the US-Iran conflict in the Middle East. Cooling US Treasury yields also provided some relief to global markets.
“More important than these external tailwinds is the sharp weakening of the AI trade, which pulled down the Nasdaq by 2.8% last Friday. The weakening trend in the AI trade is beneficial for India, which is widely regarded as a counter-AI play,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
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Supportive domestic fundamentals have also strengthened the case for a market recovery. Credit growth of 17.94% and robust GST collections in October reflect the resilience of the Indian economy and its improving growth momentum, he added.
Here are five key reasons why the Indian stock market is rising today:
1. US-Iran Peace Talks
Renewed diplomatic efforts to de-escalate the US-Iran conflict have improved investor risk appetite. Iranian and Qatari officials held discussions aimed at ending the war in the Middle East, raising hopes of a possible breakthrough that could ease supply concerns and improve the outlook for global energy markets.
“Any tangible progress on this front could help reduce the geopolitical risk premium in crude oil and offer near-term support to domestic equities,” said Ponmudi R, CEO of Enrich Money.
2. Fall In Crude Oil Prices
Crude oil prices traded lower on Monday, with Brent retreating from its highest level in six months amid hopes of easing geopolitical tensions.
Brent crude futures declined 3.31% to $109.68 a barrel, while US West Texas Intermediate (WTI) crude fell 3.33% to $100.65 a barrel.
The decline in oil prices is positive for India, which relies heavily on crude imports. Lower oil prices can help ease inflationary pressures, reduce the import bill and improve the earnings outlook for oil-sensitive sectors.
3. Strong Q2 Earnings
Corporate earnings have sustained their growth momentum in the second quarter of FY27, building on the meaningful recovery witnessed in Q1FY27 after nearly two years of muted performance.
According to Motilal Oswal Financial Services, the recovery is not limited to aggregate earnings growth but is becoming increasingly broad-based across sectors, despite persistent commodity cost pressures and an uncertain global environment.
As of October 31, 2026, earnings of the 35 Nifty companies that had declared their results had grown 22% year-on-year (YoY). Reliance Industries, JSW Steel, ICICI Bank, Coal India and Axis Bank were the key contributors, accounting for 59% of the incremental YoY earnings growth.
Motilal Oswal also raised its FY27 Nifty earnings per share (EPS) estimate by 1.1% to Rs 1,247. The FY28 EPS estimate was increased by 1.6% to Rs 1,428 from Rs 1,406.
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4. Strong Domestic Macroeconomic Data
Supportive domestic macroeconomic indicators have further strengthened investor sentiment.
India's gross Goods and Services Tax (GST) collections surged 22.9% year-on-year to Rs 2.31 lakh crore in October, marking the fastest growth in more than four years.
The strong GST collections, alongside robust credit growth, point towards resilient domestic economic activity.
“The 17.94% credit growth in the economy and robust GST collections in October reflect a resilient economy, gathering momentum,” said Dr. V K Vijayakumar.
5. Nifty Breaks Key Technical Resistance
Nifty 50 extended its recent recovery and strengthened the short-term technical structure. It index has now reclaimed its 50-day EMA, indicating improving buying momentum.
“The immediate resistance is placed around 23,300–23,400. A sustained move above the 23,200 level, supported by continued buying participation, could help the index extend its upward momentum towards this resistance zone,” said Ponmudi R, CEO of Enrich Money.
On the downside, 23,150–23,100 is likely to act as the immediate support zone, followed by the psychological 23,000 mark.
“Holding above these levels will be important to sustain the ongoing recovery and maintain the positive short-term bias. The RSI has improved to around 58, reflecting strengthening bullish momentum. The near-term outlook has turned cautiously positive, with sustained trading above 23,200 likely to strengthen the recovery and open the possibility of further upside,” Ponmudi R added.
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Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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