Both benchmarks came under pressure earlier in the session with the Sensex falling as much as 715 points and the Nifty briefly falling below 25,500 before sentiment eased trade-related concerns.
Top movers
On the 30-share Sensex, shares of Tata Steel, Asian Paints, Trent, SBI and Hindustan Unilever were the leaders, rising between 1% and 3%.
Financial stocks, which have the heaviest weight in the index, supported the recovery, rising about 0.5% after falling 0.45% earlier in the session following comments from the US ambassador.
Reliance Industries recovered to end up 0.5%, reversing an intraday decline of 1.65%. The stock fell 7.4% last week after the conglomerate said it doesn’t expect Russian crude in the next month.
On the other hand, Tejas Networks tumbled 9.5% after posting a quarterly loss, while SignatureGlobal fell 5.2% after warning that the company might not meet its pre-sales target for fiscal 2026. The benchmarks had fallen as much as 0.8% earlier in the day, extending weakness from last week when the indices lost around 2.5% in their steepest weekly decline in more than three months.
Expert views
The Indian market recovered from the day’s lows as investor sentiment improved following favorable comments on the trade deal by the US Ambassador ahead of the next round of negotiations, said Vinod Nair, head of research at Geojit Investments, adding that this positive undertone boosted overall market sentiment. “The commodities segment outperformed, supported by the strength of metals, which benefited from renewed buying interest amid supply constraints. Value stocks were also evident in consumer and banking stocks as investors looked for opportunities after recent corrections, supported by expectations of stronger third-quarter earnings and improving demand. Moreover, precious metals maintained their upward momentum amid ongoing geopolitical tensions,” Nair said.
Global markets
U.S. stock futures fell on Monday after Fed Chairman Jerome Powell said the Trump administration had threatened him with criminal charges, a development that increased investor concerns about the central bank’s independence.
Futures on the S&P 500 fell about 0.5% in early trading, while gold rose to a new record high as investors sought safety amid the escalating standoff between President Donald Trump and the Fed.
Gold climbed above $4,600 an ounce, supported by both political uncertainty in Washington and geopolitical tensions, with unrest in Iran also supporting oil prices.
European stock futures edged lower while Asian shares advanced, led by technology stocks, after data released on Friday suggested the US labor market remains resilient despite a moderation in employment growth.
The Japanese markets were closed for a holiday.
Rough impact
Oil prices fell on Monday as tensions eased after Iran said it had regained “total control” after weekend violence, allaying fears of supply disruptions to the OPEC producer. Investors also assessed renewed efforts to restart Venezuelan oil exports.
Brent crude futures fell 22 cents, or 0.4%, to $63.12 a barrel by 0939 GMT. U.S. West Texas Intermediate crude fell 25 cents, also 0.4%, to $58.87 a barrel.
Rupee vs dollar
The Indian rupee pared earlier losses to end marginally stronger against the US dollar on Monday, supported by a softer greenback and falling crude oil prices.
According to provisional data, the currency ended 2 paise higher at 90.16 against the dollar. The dollar index, which tracks the US currency against a basket of six major peers, fell 0.34% to 98.55.
(With input from agencies)
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