Dalal Street Rallies: Sensex Jumps 736 Points, Nifty Nears 24,000 Mark

Indian stock market extended sharp gains on Monday with both benchmark indices Sensex and Nifty gaining over a per cent each. The rally came on the back of the Iran-US peace deal and slipping oil prices.

Nifty ended the session in green at 23,853.90, gaining 231 points or 0.98 per cent, Sensex closed at 76,264.33, up 736.38 points or 0.97 per cent.

Amongst Nifty constituents, almost all sectors traded in the green with Nifty Realty leading the pack gaining over 3 per cent, followed by financial services, auto and cement, reflecting improving investor sentiment.

On the other hand, pharma and healthcare lagged, mid and small-cap healthcare indices remained under pressure. On BSE, Trent, IndiGo, Bajaj Finserv, Maruti, Eternal, M&M, Bajaj Finance, Titan, Infosys among others were top gainers. On the other hand, NTPC, ICICI Bank, Tata Steel, Tech Mahindra, Adani Ports among others were top losers.

Abhishek Kumar, founder SahajMoney, financial planner and SEBI RIA, said "Equity market extended their relief rally on Monday, June 15, with the Sensex and Nifty 50 holding gains of nearly 1.2%. Sensex maintained around 76,442 and the Nifty near 23,905 in afternoon trade after a gap up open briefly carried the Nifty past 24,000."

Which sectors led the stock market gains and why did pharma stocks lag?

"The trigger today was the confirmation on US Iran peace deal over the weekend under which the Strait of Hormuz would reopen soon which drove Brent crude down nearly 5% to about $83 and also lifted the rupee to 94.68, its strongest level since May 8,” Kumar noted.

Market analyst Vipin Dixena said, "Nifty has rebounded strongly and is now approaching the crucial 23,950-24,000 resistance zone. Price is trading above the 50-EMA, indicating short-term bullish momentum, but RSI is near overbought levels, suggesting some consolidation or profit booking is possible."

As per Dixena, the rally is being supported by easing geopolitical tensions and a sharp fall in crude oil prices, which is positive for India's economy.

"The trend remains bullish above 23,640, while a breakout above 24,000 can open the door for further upside. Support is at 23,640 where the market might make a base before the next upside movement," he said.

(With inputs from ANI)