Daijiworld Media Network - Mumbai

Mumbai, Nov 2: Indian benchmark equity indices rallied sharply on Monday, extending their gains for the third consecutive session, as optimism over US-Iran talks pushed crude oil prices lower and boosted investor sentiment.

The BSE Sensex surged 1,233.25 points, or 1.66 per cent, to close at 75,692.78, while the NSE Nifty climbed 387.70 points to settle at 23,440.80.

Commenting on the Nifty's technical outlook, market experts said the index had closed firmly above its 50-day Simple Moving Average (SMA) and was approaching the key resistance level of 23,500.

"The 23,250–23,350 band should now provide immediate support; holding it could open the way towards 23,600, while a break below 23,250 would weaken the breakout," analysts said.

Market sentiment received a boost from falling crude oil prices amid hopes of progress in negotiations between the United States and Iran, easing concerns over inflation and energy costs.

Positive global cues, coupled with strong gains in index heavyweight Reliance Industries, further supported the rally in benchmark indices.

Among Nifty constituents, Coal India, Tata Steel and JSW Steel emerged as the leading gainers, driving the market higher. Buying interest was particularly strong in oil and gas as well as metal stocks.

On the sectoral front, the Nifty Oil & Gas and Nifty Metal indices recorded the strongest gains during the session. However, the Nifty IT and Nifty Media indices ended in negative territory.

Despite the strong performance of frontline indices, the broader market witnessed weakness. The Nifty MidCap 100 index declined 1.19 per cent, while the Nifty SmallCap 100 index slipped 0.71 per cent.

Market watchers also pointed to foreign investors turning buyers and a global shift towards artificial intelligence-related investments as factors supporting domestic equities. However, the decline in mid-cap and small-cap indices indicated that the rally was not broad-based.