Nifty tops 23,850 as oil slump sparks broad-based rally

The key equity benchmark indices extended gains for a second consecutive session on Monday, supported by a sharp decline in crude oil prices and optimism surrounding a US-Iran peace agreement. Buying was broad-based, with most sectoral indices ending in the green. Investor sentiment was further buoyed by strong global cues, a stronger rupee and easing market volatility. The Nifty settled above the 23,850 mark, led by gains in consumer durables and auto stocks. However, pharma and healthcare shares bucked the trend and closed lower.

The S&P BSE Sensex soared 736.38 points or 0.97% to 76,264.33. The Nifty 50 index surged 231 points or 0.98% to 23,853.90.

Mahindra & Mahindra (up 3.06%), Larsen & Toubro (up 3.01%) and Reliance Industries (up 1.04%) boosted the Nifty higher today.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index gained 1.47% and the BSE 250 SmallCap Index added 1.38%.

The market breadth was strong. On the BSE, 3,086 shares rose and 1,323 shares fell. A total of 218 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 2.48% to 14.35.

Economy:

India's wholesale price inflation accelerated to 9.68% in May 2026 from 8.26% in April, driven largely by higher fuel and power prices amid rising global energy costs linked to tensions in West Asia. The latest reading is the highest in the current WPI series with 2022-23 as the base year.

India's merchandise exports rose 18% YoY to $45.20 billion in May, supported by higher shipments of engineering goods, petroleum products and electronics. Merchandise imports increased 20.6% to $73.41 billion, widening the trade deficit to $28.21 billion from $22.56 billion a year ago.

Services exports grew to $36.76 billion from $32.46 billion in the year-ago period, while services imports rose to $19.06 billion from $16.70 billion.

Overall exports, comprising merchandise and services, increased to $81.96 billion from $70.76 billion a year earlier. Total imports rose to $92.47 billion from $77.55 billion. As a result, the overall trade deficit widened to $10.51 billion in May 2026 from $6.79 billion in May 2025.

Meanwhile, India's unemployment rate edged up to 5.5% in May from 5.2% in April, according to official data released on Monday.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined 0.03% to 6.864 compared with the previous session close of 6.868.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 94.7000 compared with its close of 95.1800 during the previous trading session.

MCX Gold futures for 5 August 2026 settlement rose 1.86% to Rs 153,321.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.27% to 99.48.

The United States 10-year bond yield shed 1.03% to 4.437.

In the commodities market, Brent crude for July 2026 settlement declined $4.45 cents or 5.10% to $82.88 a barrel.

Global Markets:

US stock futures pointed to a strong start for Wall Street on Monday, with Dow Jones futures rising 445 points after President Donald Trump announced that an agreement had been reached to end the conflict between the United States and Iran.

European market traded higher, while Asian equities closed in positive territory amid hopes that easing geopolitical tensions could support global economic growth and reduce energy market disruptions.

Trump said on Sunday that the agreement with Iran was now complete. Pakistan Prime Minister Shehbaz Sharif stated that an official signing ceremony is expected to take place in Switzerland later this week.

The announcement was accompanied by plans to reopen the Strait of Hormuz, a key global oil shipping route. The development triggered a sharp decline in oil prices, with US crude falling nearly 5% as concerns over supply disruptions eased.

Investor sentiment improved despite lingering uncertainty after recent exchanges of fire involving Israel and Hezbollah in Lebanon had raised doubts over the timing of a potential agreement.

Traders are now awaiting key US economic data, including housing and retail sales figures, while attention will also be focused on the Federal Reserve's upcoming policy meeting. According to CME FedWatch data, futures markets are pricing in a more than 98% probability that the US central bank will keep interest rates unchanged.

On Friday, Wall Street ended higher, supported by optimism surrounding the potential peace agreement and a strong stock market debut by SpaceX. The S&P 500 gained 0.5% to close at 7,431.46, while the Nasdaq Composite rose 0.31% to 25,888.84. The Dow Jones Industrial Average advanced 353.51 points, or 0.7%, to 51,202.26.

SpaceX debuted on the Nasdaq at $150 per share under the ticker symbol SPCX, above its IPO price of $135. The stock surged more than 20% shortly after listing and ended the session nearly 19% higher at around $161.

Stocks in Spotlight:

Shares of Vedanta group's four demerged companies commenced trading on the stock exchanges on Monday, marking the completion of the conglomerate's long-awaited restructuring exercise.

Among the newly listed entities, Vedanta Aluminium Metal ended at Rs 495.90 on the NSE and Rs 500.65 on the BSE.

Vedanta Power closed at Rs 41.90 on the NSE and Rs 42.50 on the BSE, while Vedanta Oil & Gas closed at Rs 36.10 and Rs 37.05, respectively. Vedanta Iron & Steel ended at Rs 21.06 on the NSE and Rs 21.05 on the BSE. The residual Vedanta closed at down 2.47% at Rs 302 on the NSE.

Deccan Gold Mines surged 17.01% after the Supreme Court ruled in its favor. The apex court upheld the company's mining lease rights for the Ganajur Gold Project, established before 2015. This decision protects legacy mining applications from new auction mandates. The ruling clears the path for the company's project in Karnataka, which holds substantial gold resources.

Bharat Forge jumped 3.85% after its wholly owned defence subsidiary, Kalyani Strategic Systems (KSSL), unveiled the MArG series of 155mm mounted artillery guns at Eurosatory 2026 in Paris.

Shares of Sanofi India surged 4.30% to Rs 3,255 after a bulk deal involving the company's shares was executed on the BSE.

According to exchange data, Nippon India Mutual Fund purchased 2.64 lakh shares, or 1.15% equity, of Sanofi India at Rs 3,150 per share through a bulk deal on 12 June 2026. The shares were sold by HDFC Life Insurance Company, which offloaded 2.75 lakh shares, or 1.19% equity, at the same price.

As of the March 2026 quarter, Nippon India Small Cap Fund held an aggregate 3.79% stake in Sanofi India, while HDFC Life Insurance Company's Shareholders Solvency Margin Account owned 1.47% of the pharmaceutical company.

JSW Energy rose 1.01% after the company said that it has signed a definitive agreement with Kolahai Infotech and SFI Parcel Services to acquire 100% equity shares of Maruti Clean Coal & Power (MCCPL).The transaction values MCCPL at an enterprise value of approximately Rs 1,410 crore, subject to customary closing adjustments as per the definitive agreements.

Ashoka Buildcon jumped 7.10% after the company secured a public-private partnership (PPP) project from Chhattisgarh State Industrial Development Corporation (CSIDC) for the development of a Gems & Jewellery Park in Raipur. As per the agreement, Ashoka Buildcon will pay a premium of Rs 112.40 crore along with an annual lease rent equivalent to 2% of the premium amount, subject to a 10% escalation every fourth year.

SEPC surged 6.66% after the company announced that it had secured a major order worth Rs 673.32 crore from Steel Authority of India (SAIL)'s IISCO Steel Plant (ISP), Burnpur, for its 4.08 MTPA crude steel expansion project.

Ceinsys Tech jumped 1.02% after the company and its wholly owned US subsidiary, Technology Associates Inc., received purchase orders worth Rs 30.06 crore ($3.16 million) from T Second Inc., USA. The orders include the supply of NVME drives; AI-powered building and road extraction, encroachment and asset monitoring solutions processed on the BRYCK AI platform, and enterprise geospatial imagery repository and AI feature extraction services.

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