The benchmark BSE Sensex recovered nearly 1,135 points from the day’s low to close at 75,315.04, gaining 77.05 points or 0.10 per cent. Meanwhile, NIFTY 50 ended above the crucial 23,600 mark despite heavy early selling pressure driven by geopolitical uncertainty and rising crude oil prices.

Markets witnessed intense volatility during the session as investors reacted to escalating tensions in West Asia, record weakness in the rupee and concerns over rising inflationary risks linked to surging oil prices.

However, strong buying in IT stocks and late-session recovery in select large-cap shares helped stabilise sentiment.

IT Stocks Shine Amid Weak Rupee

The information technology sector emerged as the biggest support for the markets during Monday’s session.

The NIFTY IT index surged more than 2 per cent, making it the top-performing sectoral index of the day.

Heavyweight IT companies including Infosys and Tech Mahindra witnessed strong buying interest as investors expected export-oriented technology firms to benefit from the sharp depreciation in the Indian rupee.

A weaker rupee generally improves earnings realisations for IT companies because a significant portion of their revenue comes from overseas markets, particularly the United States and Europe.

Telecom major Bharti Airtel also emerged among the top gainers in the benchmark indices, contributing to the market’s recovery.

Broader Markets Under Pressure

Despite the rebound in benchmark indices, broader markets remained under pressure throughout the session.

The Nifty Midcap 100 index ended around 0.90 per cent lower, while the Nifty Smallcap 100 index declined approximately 1.20 per cent.

Market breadth remained weak as investors preferred defensive and export-oriented sectors amid global uncertainty and rising volatility.

Analysts noted that the divergence between frontline indices and broader markets indicates continued caution among traders despite the late recovery.

Pharma and Healthcare Stocks Outperform

Apart from IT stocks, defensive sectors such as pharmaceuticals and healthcare also witnessed strong buying.

The NIFTY Pharma and NIFTY Healthcare indices outperformed the broader market as investors shifted towards relatively safer sectors during the volatile trading session.

Pharmaceutical companies are often considered defensive plays during uncertain economic conditions because of stable demand and export-linked earnings potential.

Consumer Durables and PSU Banks Lag

On the losing side, consumer durable and public sector banking stocks remained under significant pressure.

The NIFTY PSU Bank index witnessed notable weakness, with stocks such as Punjab National Bank, Bank of India and Canara Bank among the major losers.

Consumer durable stocks also faced selling pressure amid concerns that higher inflation and elevated fuel prices could impact discretionary spending demand in the coming months.

Individual Stocks in Focus

Several individual stocks remained active during the trading session due to earnings announcements and company-specific developments.

Shares of Godfrey Phillips India fell more than 6 per cent despite reporting strong quarterly results and announcing a dividend payout.

Cochin Shipyard declined sharply after reporting weaker-than-expected revenue for the March quarter, primarily due to softness in its ship repair business.

On the positive side, The Great Eastern Shipping Company surged over 12 per cent to hit a record high as investors remained optimistic about rising freight rates and strong shipping demand.

Meanwhile, Steel Authority of India recovered from intraday lows after brokerage firms projected potential upside following its quarterly earnings announcement.

FPIs Continue Selective Buying

Foreign portfolio investors (FPIs) remained net buyers for the second consecutive session, offering some support to market sentiment.

Market experts noted that foreign investors have increasingly diversified their holdings beyond traditional large-cap stocks over the past few years, even as overall ownership in some benchmark companies has declined.

Analysts believe continued FPI flows will remain important for sustaining market stability amid global uncertainty and rising geopolitical risks.

Oil Prices and Rupee Remain Key Concerns

Investor sentiment continued to remain cautious due to the sharp rise in global crude oil prices and weakness in the Indian rupee.

Brent crude prices remained elevated amid ongoing tensions in West Asia, raising concerns over inflation, higher import bills and pressure on India’s current account balance.

The Indian rupee also remained under stress after falling to a fresh record low against the US dollar earlier in the day.

Economists warned that sustained high oil prices could negatively impact corporate margins, inflation trends and consumer demand going forward.

Market Outlook

Despite the volatile session, the strong recovery from intraday lows indicates that domestic liquidity and selective buying interest continue to support Indian equities.

However, analysts believe markets are likely to remain highly sensitive to developments in crude oil prices, geopolitical tensions and global currency movements in the near term.

Investors are expected to closely track upcoming macroeconomic data, foreign institutional investor activity and corporate earnings for further market direction.

Market participants also expect export-oriented sectors such as IT and pharmaceuticals to remain relatively resilient if rupee weakness continues in the coming weeks.