Sensex Surges Over 550 Points, Nifty Reclaims 24,550 as Metal, Auto and IT Stocks Rally

Indian benchmark indices opened sharply higher on Monday, buoyed by positive global cues, easing crude oil prices and sustained foreign institutional inflows.

As investors looked ahead to the Reserve Bank of India’s monetary policy decision later this week. At 9:16 am, the BSE Sensex was up 553 points, or 0.71%, at 78,648, while the NSE Nifty gained 172 points, or 0.70%, to trade above the 24,550 mark at 24,555.

The rally was broad-based. The Nifty Next 50 advanced 0.76%, while the Nifty 100, Nifty 200 and Nifty 500 gained between 0.6% and 0.7%. Broader markets also remained firm, with the Nifty Midcap 100 rising 0.42% and the Nifty Smallcap 100 adding 0.54%.

Despite the upbeat sentiment, the India VIX, a gauge of market volatility, edged up 0.85% to 11.86.

Metals, Auto and IT Lead the Rally

Sectorally, the Nifty Metal index emerged as the top performer, climbing 1.23%, followed by Nifty Auto (0.97%), Nifty IT (0.95%), Nifty Cement (0.90%) and Nifty PSU Bank (0.88%). Financials, FMCG and Oil & Gas stocks also traded in positive territory.

The only notable laggards were Nifty Media, which fell 1.47%, and Nifty Consumer Durables, down 0.25%.

Among Sensex constituents, InterGlobe Aviation (IndiGo) surged more than 3%, while Tata Steel, Bajaj Finance, ITC, TCS, Infosys, Mahindra & Mahindra, Larsen & Toubro and Asian Paints posted strong gains. Sun Pharma and Titan were the only stocks trading in the red during early deals.

Analysts See Scope for Further Upside

V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, said the market appears poised for a breakout above the 24,500 level on the Nifty.

“The decline in Brent crude to below $84, the good progress of the monsoon in July and FIIs turning buyers are positive triggers for the market. Growth has remained resilient despite several headwinds, and the fiscal and monetary stimulus announced in 2025 is now supporting economic momentum,” he said.

He added that bank credit growth of over 18%, healthy automobile sales and stronger-than-expected first-quarter corporate earnings indicate that economic activity remains robust, raising the possibility of better-than-expected earnings growth in FY27.

According to Vijayakumar, stable inflows through FCNR(B), ECB and OFCB routes have also helped support the rupee, encouraging foreign investors to return to Indian equities.

• “In brief, it is advantage bulls,” he said.
• Falling Oil Prices Boost Sentiment

Investor sentiment also received a boost after Brent crude prices fell around 5% to a three-week low of $81.55 a barrel amid renewed hopes of easing tensions in the Middle East.

US President Donald Trump said talks with Iran were scheduled for Monday, raising expectations of a diplomatic breakthrough that could help reopen the Strait of Hormuz and reduce concerns over global oil supplies.

Lower crude prices are generally positive for India, which imports the majority of its energy requirements.

RBI Policy in Focus

The market’s attention will now shift to the Reserve Bank of India’s monetary policy announcement on August 5. The central bank is widely expected to leave benchmark interest rates unchanged as inflation remains relatively contained.

Indian equities ended July with gains of more than 2%, marking a second straight month of advances, supported by resilient corporate earnings and sustained foreign fund inflows despite volatility triggered by geopolitical tensions and fluctuating oil prices.

Elsewhere in Asia, markets traded mixed, with Japan and South Korea declining about 2% and 4%, respectively, while the Japanese yen strengthened sharply after Washington and Tokyo confirmed a joint intervention to support the currency.