Sensex Surges 900 Points as Markets Rally on Multiple Factors Including BJP's Early Poll Lead

Indian Equity Indices Surge on Monday as Crude Oil Prices Ebb and Global Cues Improve

The Indian benchmark equity indices Sensex and Nifty rallied sharply on Monday, driven by easing crude oil prices, firm global cues, and a surge in auto shares, while early trends in state polls lifted investor sentiment. The Sensex climbed 918.15 points or 1.19 percent to 77,831.65 at around 9:40 am, while the broader Nifty advanced 267.60 points or 1.12 percent to 24,265.15.

Strong Performance from Individual Stocks

Shares of Maruti Suzuki India surged 4 percent after the company reported total sales of 2,39,646 units in April, registering a 33.29 percent year-on-year growth. Hindustan Unilever gained 3.7 percent after reporting a rise in March-quarter profit, aided by consumption tax cuts. Equitas Small Finance Bank jumped 9.6 percent following a surge in quarterly profit. NCC Ltd rose 2 percent after securing four orders worth Rs 1,703 crore in April.

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Sectoral Indices Trade in Green

All 16 major sectoral indices traded in the green, with the broader Nifty smallcap100 and midcap100 indices rising about 1 percent each. The auto index rose about 2 percent, leading sectoral gains. Shares of Hero MotoCorp and Maruti Suzuki gained 2.3 percent and 4 percent, respectively, on strong monthly sales data. Bajaj Auto jumped 4.8 percent to an 18-month high after reporting a 40 percent year-on-year rise in April sales.

State Election Results and Crude Oil Prices

Early trends from state elections show the Bharatiya Janata Party leading in Assam, West Bengal, and Puducherry. Crude oil prices declined, with Brent crude trading 0.27 percent lower at USD 107.9 per barrel, after touching a four-year high of USD 126.41 last week. The decline in crude oil prices and developments in West Asia will continue to guide market trends.

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Global Markets and Auto Shares

Asian markets, including South Korea's Kospi, China's Shanghai SSE Composite, and Hong Kong's Hang Seng, were trading higher, while US markets ended mostly in the green on Friday. Strong buying in auto shares led sectoral gains, with the auto index rising about 2 percent.

Market Outlook

Anand James, Chief Market Strategist at Geojit Investments, said the Nifty could move towards the 25,000–25,600 range, though volatility may persist with the VIX above 18. The immediate breakout range for the index is seen at 24,050–24,350.