MUMBAI: Benchmark indices Sensex and Nifty staged a sharp rebound on Monday after falling in early trade following a correction in crude oil prices amid reports of ceasefire efforts in the ongoing West Asia war.
Besides, intense buying in bank stocks also supported investor sentiments.
In a volatile session, the 30-share BSE Sensex jumped 787.30 points, or 1.07 per cent, to settle at 74,106.85. During the day, it surged 887.91 points, or 1.21 per cent, to 74,207.46.
The 50-share NSE Nifty edged higher by 255.15 points, or 1.12 per cent, to end at 22,968.25.
From the 30-Sensex firms, Trent jumped the most by 7.89 per cent. Axis Bank, Titan, Larsen & Toubro, UltraTech Cement and Bajaj Finance were also among the major gainers.
On the other hand, Reliance Industries, HCL Tech and Sun Pharma were the laggards.
Brent crude, the global oil benchmark, dropped 0.71 per cent to USD 108.3 per barrel.
In Asian markets, South Korea's benchmark Kospi and Japan's Nikkei 225 index ended higher. Markets were closed in Hong Kong and Shanghai for a holiday.
"Domestic equities staged a strong rally as value buying gained traction across the board. Crude prices softened marginally on reports of ceasefire efforts, while encouraging provisional banking data supported interest in rate-sensitive segments," Vinod Nair, Head of Research, Geojit Investments Limited, said.
However, overall risk appetite remains cautious due to persistent inflationary pressures and concerns over potential disruptions to global trade, he added.
US and domestic equity markets were closed on Friday for Good Friday.
"Today’s recovery was driven primarily by a modest pullback in crude oil prices, with Brent slipping below the USD 105 mark amid reports of a proposed temporary ceasefire from Middle East mediators. Additionally, domestic institutional investors continued to provide stability at lower levels, absorbing selling pressure and supporting the broader market structure," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 9,931.13 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 7,208.41 crore.
On Thursday, the 30-share BSE Sensex settled higher by 185.23 points, or 0.25 per cent, at 73,319.55. The Nifty closed at 22,713.10, up by 33.70 points, or 0.15 per cent.