The Indian stock indices closed at an eight-month high on Monday after a volatile session. After an initial profit-booking session, a decline in crude oil prices and foreign investor interest in domestic equities seem to have backed investor sentiment. Dalal Street was also consolidating gains after a consecutive seven-day winning streak.
The Nifty 50 gained 0.23 per cent to settle at 25,044.65, despite choppy intraday trade. The BSE Sensex rose 0.13 per cent to close at 81,106.65, though the market swung through red and green phases mid-day. This was its highest close since February 27, 2026.
"Improving FII participation and better-than-expected corporate earnings have strengthened expectations of an upgrade to the FY27 earnings outlook, supporting market sentiment,"said Vinod Nair, Head of Research at Geojit Investments Limited.
The State Bank of India, Trent, Larsen & Toubro, NTPC, HDFC Bank and ICICI Bank were the major winners in the Sensex pack. HCL Tech, Tata Steel, Tech Mahindra, Bajaj Finance and UltraTech Cement were lagging behind.
Information technology stocks fell 1.2 per cent while heavyweight financials gained 0.8 per cent.
Investors took a step back from viewing India as an alternative AI solutions market as some analysts flagged fundamental challenges such as AI-driven automation taking over traditional IT enterprise services.
The Nifty Bank index closed 1.51 per cent higher, reaching 59,741.25. The massive foreign inflow was heavy buying directed straight into heavyweights like ICICI Bank, HDFC Bank and State Bank of India, possibly leading to a rally in banking stocks. Foreign Institutional Investor (FII) net inflows for November have surpassed ₹32,200 crore.
Brent crude prices fell to about $98 per barrel after US President Donald Trump signalled an end to the West Asia conflict.
Global markets traded mixed, with tech-heavy asian markets recovering slightly from last week’s tech sell-off. Japan’s Nikkei 225 was up roughly 3 per cent amid broader chip-sector pressure. South Korea’s Kospi rose 0.23 per cent while the Kosdaq index fell 1.14 per cent. Hong Kong’s Hang Seng index closed 0.13 per cent lower.
Wall Street’s Dow Jones declined 0.46 per cent. However, the Nasdaq and S&P closed slightly higher on Friday.
