Sensex jumps 800 points intraday, Nifty at 24,590: What’s behind the rally?

Stock market benchmark indices Sensex and Nifty opened in the green on Monday following the US halting its strikes on Iran, leading to a cool-off in oil prices.

The BSE Sensex started the session with a gain of nearly 566 points or 0.72 per cent at 78,657. The index made a high of 78,895.10, up 801 points or 1.02 per cent. Similarly, the Nifty 50 index rose 146 points or 0.60 per cent to open at 24,529. The 50-share pack made a high of 24,576.45 as it gained 193 points or 0.79 per cent.

On the sectoral front, the Nifty Metal and Nifty FMCG indices surged more than 1 per cent, followed by Nifty Metal and Nifty PSU Bank. In the broader markets, Nifty Midcap 100 rose 0.59 per cent, and Nifty Smallcap 100 was up 0.99 per cent.

“Technically, the market continues to maintain a positive bias as long as the Nifty sustains above the 24,250 support zone. A decisive break below this level could trigger a pullback towards 24,100. On the upside, immediate resistance is placed near 24,550, followed by the 200-day moving average around 24,780,” said Rajesh Palviya, head of research, Axis Direct.

Stock Market Spike: Here’s why Sensex, Nifty are trading higher

Oil price slips

On Monday, at last check, oil prices slipped over 5 per cent, dropping $4.44 to trade at $83.49 per barrel after US President Donald Trump said the negotiations with Tehran will begin on Monday.

Oil prices fell in a sign of de-escalation in the West Asia war after Trump said late on Saturday on his Truth Social platform that Iran and other Middle Eastern countries had asked for time to complete a deal that would lead to “the Immediate, Complete ‌and Total” reopening of the vital strait and “an end to Iran’s nuclear threat”.

Rupee opens stronger

The domestic benchmark indices gained in early trade, tracking the Indian rupee’s stronger opening against the US dollar. The rupee appreciated by 31 paise to open at 95.12 per dollar, compared with Friday’s close of 95.38, boosting investor sentiment.

The gains were followed by five straight sessions of gains for the domestic currency against the greenback. “The currency was supported by the sharp decline in the US Dollar Index to around 100, lower Brent crude oil prices, sustained foreign portfolio inflows, and continued RBI presence in the foreign exchange market,” Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors LLP.

Decent Q1 show

Another factor aiding the gains in benchmark indices is that India Inc.’s Q1FY27 earnings season remained resilient, with several sectors reporting healthy profit growth despite pressure from oil marketing companies (OMCs). According to Motilal Oswal Financial Services (MOFSL), the overall earnings performance was stronger than expected, supported by robust showings from banks, metals, technology, and auto companies.

MOFSL said the combined earnings of its 211-company coverage universe rose 2 per cent year-on-year (Y-o-Y) in the June quarter, outperforming its expectation of a 10 per cent Y-o-Y decline, largely due to a weaker-than-anticipated drag from OMCs. Excluding OMCs, earnings grew 17 per cent Y-o-Y, ahead of the brokerage’s estimate of 13 per cent growth. The earnings expansion was led by the banking, financial services and insurance (BFSI) sector with 20 per cent Y-o-Y growth, followed by metals, technology and automobiles.

“The Q1 results declared so far also have surprised a bit on the upside. If this trend sustains, FY27 earnings growth can be better than initial expectations,” VK Vijayakumar, chief investment strategist, Geojit Investments, said.

FII Inflow

After persistent selling, foreign portfolio investors turned net positive on Indian equities. Data from exchanges showed FIIs halted their heavy selling streak, adding ₹277.48 crore on July 31, 2026. FPI buy orders worth ₹19,045.51 crore exceeded their sell order of ₹18,768.03 crore,

Similarly, domestic institutional investors continued their buying streak, recording a strong net inflow of ₹2,260.37 crore on the same day, with total purchases of ₹19,885.80 crore against sales of ₹17,625.43 crore.