Mumbai | August 3: Indian equity markets started the week on a strong note, with benchmark indices witnessing a sharp rally in early trade on Monday. The positive momentum was driven by broad-based buying across banking, FMCG, metal, cement, and chemical stocks, supported by declining crude oil prices, steady monsoon progress, and renewed foreign investor participation.
The BSE Sensex surged over 800 points, gaining around 1.02 per cent, to touch an intraday high of 78,895.10, while the NSE Nifty 50 climbed 192.85 points, or 0.79 per cent, to reach 24,576.45.
The market rally was led by strong buying interest in key sectors. Indices tracking FMCG, metals, chemicals, cement, PSU banks, and private banks advanced by up to 1 per cent, reflecting improved investor confidence and positive market sentiment.
The broader market also witnessed healthy participation, with the Nifty Smallcap 100 and Nifty Microcap 500 indices gaining around 1 per cent, indicating strong buying interest beyond large-cap stocks.
However, some sectors remained under pressure, with media, pharmaceutical, and healthcare stocks witnessing selling activity. The Nifty Media, Nifty Pharma, and Nifty Healthcare indices declined by up to 1.6 per cent amid profit booking.
Market analysts attributed the rally to several positive factors, including easing international crude oil prices, which helped reduce concerns over inflation and input costs. The improvement in global oil prices has provided relief to economies like India, which relies significantly on crude imports.
The return of Foreign Institutional Investors (FIIs) as net buyers has further strengthened market sentiment, bringing fresh liquidity into domestic equities. Analysts said favourable monsoon progress, resilient economic growth, strong credit expansion, healthy automobile sales, and better-than-expected first-quarter corporate earnings have improved expectations for future earnings growth.
Experts also highlighted that stable capital inflows through channels such as FCNR(B), External Commercial Borrowings (ECB), and Overseas Foreign Currency Borrowings (OFCB) have supported the rupee and encouraged renewed foreign participation in Indian markets.
From a technical perspective, analysts believe the Nifty is attempting to build a strong base above the 24,500 level. The index has immediate support near 24,350–24,400, backed by strong put open interest, while resistance is seen around the 24,600 mark due to increased call writing.
Global cues also remained supportive, with crude oil prices witnessing a sharp decline. Brent crude, the global benchmark, fell more than 5 per cent to around $83.31 per barrel, while West Texas Intermediate (WTI) crude declined nearly 7 per cent to approximately $78.78 per barrel.
With improving domestic fundamentals, renewed foreign investor interest, and favourable global developments, market participants are closely tracking corporate earnings, economic data, and international cues for further market direction.