The Indian stock market recorded gains on Monday as cooling oil prices, strong global cues and other factors boosted investor sentiment.

Sensex jumped 564 points to close near 74,859, while Nifty 50 gained around 68 points to end the session above 23,414. The sharp gains in the afternoon added nearly Rs 2 lakh crore to the total market capitalisation of all stocks listed on BSE, pulling it up to near Rs 482 lakh crore.

This comes after Sensex and Nifty saw divergence for two consecutive sessions, with Sensex closing in the red and Nifty in the green following sharp swings during the closing auction session (CAS). Notably, Sensex today recorded sharper gains than Nifty, closing 0.76% higher while the latter gained only 0.29%.

UltraTech Cement, HCLTechnologies, Eternal, Titan, ITC, Tech Mahindra, Sun Pharma and Asian Paints shares jumped around 2-4% to lead gains on Sensex. Bucking the trend, Bharti Airtel shares dropped around 2%, while those of Power Grid fell over 1%.

Broader markets however underperformed benchmark indices, with Nifty Midcap 100 and Nifty Smallcap 100 slipping into the red. The overall market breadth remained negative, with NSE seeing 1,735 advances against 1,858 declines, while 112 stocks remained unchanged.

Among the sectors, Nifty Pharma, Nifty Realty and few other indices jumped more than 1% each to lead gains. Nifty Metal, Nifty IT and Nifty PSU Bank however slipped into the red.

Here are four key factors that boost overall sentiment on Dalal Street today:

1) Oil prices cool down

Oil prices fell for a fourth consecutive session, with Brent crude futures dropping over 2% on Monday to trade below $102 per barrel amid rising hopes for a recovery in Saudi Arabian shipments, even as attacks by Yemen’s Iran-backed Houthis continued to raise tensions across the Middle East amid a stalemate between the US and Iran.

The Houthis said during the weekend that they had targeted "sensitive" sites in the Saudi capital Riyadh with missiles and drones, along with an Aramco facility in Yanbu on the Red Sea, a key oil export hub. The attacks on Saudi Aramco's East-West pipeline have led the state energy company to increase exports through the Strait of Hormuz this month and next, after suspending some shipments through Yanbu.

"Middle East oil flows remain surprisingly strong despite the disruption to Saudi Arabia's East-West pipeline," JPMorgan analysts were quoted as saying by Reuters. They added that total oil flows averaged 17.1 million bpd over the past 10 days, which was 6.1 million bpd below the 2025 average.

2) Bond yields decline slightly

After a sharp surge that pushed US bond yields beyond the crucial psychological mark of 5%, the yields on US Treasury notes slightly cooled down. The benchmark 10-year US Treasury yield fell to 4.959%, while that for the 30 year notes declined to 5.296%.

Cooling bond yields are typically considered a positive for the equity market, as they reduce the shine for the comparatively lower-risk debt market.

Dalal Street’s bullish sentiment today comes amid an overall positive global market sentiment. In Asia, South Korea’s Kospi jumped nearly 2%, while those of Japan’s Nikkei, Hong Kong’s Hang Seng, China’s Shanghai Composite and Taiwan Weighted gained around 1% each.

European markets also recorded sharp gains, with Germany’s DAX gaining more than 1%. France’s CAC and Germany’s DAX gained nearly 1% each. Last week, the US stock market also closed in the green, and stock futures today indicate a positive start for Wall Street.

Foreign investors turned net buyers of Indian equities, net purchasing shares worth around Rs 600 crore, according to provisional data on NSE. This comes after a long streak of selling during which FIIs net sold Indian shares worth more than Rs 10,476 crore over six sessions.

It is however important to note that the net purchase amount is provisional, and not enough when compared to the sharp selloff seen earlier. However, FII buying often turns sentiment in favour of the market.

What lies ahead for Dalal Street?

Global geopolitical risks are increasing, V K Vijayakumar, Chief Investment Strategist at Geojit Investments, noted. He added that the conflicts in the Middle East and the Russia-Ukraine war are escalating. However, Brent crude has declined to below $102 per barrel, thanks to the increasing oil flow through the Strait of Hormuz.

The US 10-year bond yields are hovering around 5%, posing a threat to equity markets. But equity markets are holding their ground taking cues from the robust growth in developed economies and expectations of good corporate earnings, Vijayakumar said, adding that in India, too, this pattern is playing out.

“GDP growth of 7% and Nifty earnings growth of 12 to 14% are achievable in FY27. The broader market earnings growth will be much better. These expectations are already in the price since the mid-and small-cap valuations are at significant premium to large-caps. A sectoral pivot to large-caps is likely. But this will happen only when the Iran-US conflict is resolved and crude and bond yields decline. Investors should wait for this pivot and, meanwhile, accumulate high quality large-caps available at attractive valuations,” according to the analyst.

With Nifty having reached within touching distance of the 23,400 objective, a consolidation is expected, said Anand James, Chief Market Strategist at Geojit Investments. He however said that the favoured view expects this phase to be short-lived and a rise to 23,560 and beyond may be expected if dips are contained above 23,280/260.

“Meanwhile, we will wait for break past 23,116 to re-consider prospects of 22,600-21800,” the analyst noted.