Indian benchmark indices opened sharply higher on Monday, with the Sensex and Nifty gaining nearly 1 per cent in early trade as lower crude oil prices, renewed foreign institutional investor (FII) buying and improving domestic economic indicators boosted investor sentiment.
The Sensex surged around 800 points, or 1.02 per cent, to an intraday high of 78,895.10, while the Nifty climbed 192.85 points, or 0.79 per cent, to 24,576.45 during morning trade.
Buying remained broad-based, with banking, FMCG, metal and cement stocks leading the rally.
The Nifty FMCG, Metal, Chemicals, Cement, PSU Bank and Private Bank indices all advanced by up to 1 per cent.
Media, pharmaceutical and healthcare stocks underperformed, with their sectoral indices declining by as much as 1.6 per cent.
The broader market also remained positive, with the Nifty Microcap 500 and Nifty Smallcap 100 indices rising about 1 per cent, reflecting improved risk appetite among investors.
Market analysts said the Nifty appears well-positioned to break above the 24,500 level, supported by easing crude oil prices, favourable monsoon progress and the return of FIIs as net buyers. They also cited resilient economic growth, credit expansion of over 18 per cent, healthy automobile sales and stronger-than-expected first-quarter corporate earnings as factors that could drive better-than-anticipated earnings growth in FY27.
Analysts said strong inflows through FCNR(B), ECB and OFCB channels have stabilised the rupee and supported the return of foreign investors.
Technically, Nifty has strong support at 24,350-24,400, while heavy call writing near 24,600 may cap near-term gains.
Brent crude fell over 5 per cent to $83.31 a barrel, and WTI dropped nearly 7 per cent to $78.78, boosting overall market sentiment.