The Indian stock market witnessed strong buying on Monday, with benchmark indices BSE Sensex and NIFTY 50 rising over 1 per cent each during intraday trade.
The Sensex surged nearly 1,000 points, or 1.3 per cent, to hit 77,911, while the Nifty 50 climbed 1.2 per cent to touch 24,290. The rally remained broad-based as the Nifty Midcap 150 and Nifty Smallcap 250 indices also gained more than 1 per cent.
Investor wealth increased by nearly Rs 6 lakh crore in a single session as the market capitalisation of BSE-listed firms jumped from Rs 463 lakh crore to Rs 469 lakh crore.
Reasons behind the rally
1. Assembly election trends
Experts said markets reacted positively to early trends from the 2026 Assembly Elections in West Bengal, Tamil Nadu, Kerala, Assam, and Puducherry.
Analysts believe BJP’s strong performance in Assam and Puducherry, along with gains in West Bengal, Kerala, and Tamil Nadu, boosted hopes of political stability and stronger business activity.
“As the market had an idea about the Assam and Puducherry election results, it was mixed on the West Bengal election results. So, if the positive trends continue and BJP’s margin gets further extended against its rival Mamata Banerjee’s Trinamool Congress, there can be a spike in the Indian stock market,” said Sandeep Pandey.
2. Hopes around US-Iran talks
Market sentiment also improved after signs of progress in talks between the United States and Iran.
US President Donald Trump said discussions with Iran were “very positive” after Tehran reportedly submitted a 14-point proposal through Pakistan aimed at easing tensions and addressing issues related to the Strait of Hormuz.
3. Crude oil prices ease
Falling crude oil prices also supported the rally. Brent crude slipped below $110 per barrel after reports said the US may assist ships stranded in the Strait of Hormuz.
“The market trend will be guided by the crude oil prices, which, in turn, will be decided by the news and happenings in West Asia. President Trump’s declaration that the U.S. will help and guide ships through the Strait of Hormuz has brought Brent crude down to around $108 levels. Also, there is a latest proposal from Iran to the US delivered through Pakistan,” said VK Vijayakumar.
4. Positive global cues
Asian markets also remained upbeat, with South Korea’s Kospi index rising nearly 5 per cent amid easing concerns over the West Asia conflict. Markets in Japan and China remained closed due to holidays.
5. Technical factors
According to ICICI Securities, the 24,500 level may act as a key resistance zone for the Nifty, while strong support remains near 23,800.
Hitesh Tailor said immediate support for Nifty is placed between 23,850 and 23,900, while resistance is seen in the 24,250–24,300 range. He added that the RSI remains neutral, though rising volatility indicates cautious sentiment in the market.
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