Sensex rallies 550 pts, Nifty above 24,550; IT stocks lead gains

Markets open strong, extend winning streak

Indian stock benchmarks opened sharply higher on Monday, with the Sensex surging over 550 points and the Nifty50 climbing above the 24,550 mark in early trade. The rally marked the fourth consecutive session of gains, buoyed by broad-based buying and a positive global mood.

The Nifty touched an intraday high near 24,700 before settling above 24,550, while the Sensex gained as much as 600 points at one stage. Traders pointed to a risk-on sentiment across Asian markets, aided by reports of the US calling off planned strikes on Iran, which eased geopolitical tensions.

IT stocks lead the charge

Information technology shares emerged as the standout performers, with heavyweight names in the sector driving the indices higher. The rally was not confined to large caps—midcap and smallcap stocks also witnessed buying interest, reflecting a broad uptrend.

Among individual stocks, IndiGo emerged as a notable gainer, attracting strong investor appetite. The airline's shares outperformed the broader market, though analysts remained cautious about sustainability of the upmove in the near term.

Geopolitical ease fuels sentiment

The positive mood was largely attributed to news that the United States had halted planned military strikes on Iran. This development reduced the risk of an immediate escalation in the Middle East, a key concern for global investors over the past week.

Oil prices, which had spiked on fears of supply disruption, showed signs of cooling, providing additional relief to import-dependent economies like India. A softer crude outlook is seen as a positive for corporate margins and the rupee.

Market breadth and sectoral trends

Market breadth was strongly positive, with more than two stocks advancing for every one that declined on the BSE. All major sectoral indices were in the green, with IT and auto stocks leading, while banking and financials also contributed to the gains.

The Nifty's reclaim of the 24,550 level is being watched closely by traders as a short-term support. However, volumes were moderate, suggesting that some investors are waiting for more clarity on global cues before committing fresh capital.

What to watch next

Investors will now turn their attention to upcoming economic data and quarterly earnings from key companies. Analysts say that while the current momentum is encouraging, the market's ability to hold above the 24,700 level on the Nifty will be crucial in the coming sessions.

Global cues, especially any further developments on the US-Iran front and movement in crude prices, are likely to dictate the market's direction in the near term. Traders are also keeping an eye on foreign institutional investor flows, which have been uneven in recent weeks.