Election cheer fuels rally, oil clouds linger ahead

Despite expectations of continued FII selling in Indian large-cap stocks, foreign investors turned net buyers on Monday, purchasing equities worth ₹2,835.62 cr

FPJ News Service

mumbai

Indian equities closed on a constructive note on Monday, buoyed by election optimism and resilient corporate earnings, even as investors remained watchful of global energy risks.

The outcome in West Bengal lifted sentiment across Dalal Street, triggering selective buying in heavyweight stocks and reinforcing near-term confidence. The BSE Sensex rose 355.90 points to settle at 77,269.40, while the Nifty 50 advanced 121.75 points to close at 24,119.30. Market breadth stayed positive, with gains led by Reliance Industries, Hindustan Unilever, Adani Ports and Larsen & Toubro. In contrast, Bharti Airtel, Kotak Mahindra Bank and Tata Consultancy Services lagged amid sectoral rotation.

Analysts said the rally was largely sentiment-driven and could prove short-lived. The trajectory of crude oil prices—shaped by tensions in West Asia and developments around the Strait of Hormuz—remains the dominant external variable. Brent crude easing towards $108 per barrel has offered temporary relief, but volatility persists.

Despite expectations of continued FII selling in Indian large-cap stocks, foreign investors turned net buyers on Monday, purchasing equities worth ₹2,835.62 crore. 

Domestic institutional investors (DIIs) remained supportive, with net buying at ₹4,764.16 crore. Despite intermittent profit booking, investor confidence has been supported by stronger-than-expected quarterly earnings and hopes of gradual geopolitical de-escalation. For now, markets appear to be balancing domestic optimism with global caution—cheered by political clarity at home, yet mindful of energy shocks abroad.