India Market Wrap: Nifty, Sensex Close Over 1% Higher Led By Reliance, Banking Stocks; Defence Sector Shines

Benchmark indices rallied on Monday, with the Nifty and the Sensex closing 1.2% higher, led by strength in bluechip stocks. 

The surge in heavyweights such as Reliance Industries, Sun Pharma, and Axis Bank, coupled with a rally in major banking and financial services companies, fuelled the rally on Dalal Street.

On Stocktwits, retail sentiment surrounding the Nifty 50 stayed ‘bullish.’ Market watchers will be focused on commentary regarding U.S. tariff agreements and the tensions at the India-Pakistan border.

Reliance Industries’ shares gained 5% on Monday as investors and brokerages cheered its strong fourth-quarter earnings. Shares hit a six-month high as the company's digital services and retail businesses helped offset margin pressures in its oil-to-chemicals (O2C) segment.

SML Isuzu cracked over 10% after Mahindra & Mahindra (M&M) announced plans to acquire a majority stake in the company.  In contrast, M&M's stock gained about 2%. The open offer price was at a steep 13% discount to SML’s Friday closing price, triggering a sell-off.

Sectorally, defence was the shining star during the day, with names like Paras Defence, Bharat Dynamics (BDL), Cochin Shipyard, and Hindustan Aeronautics (HAL) rallying between 5% and 7%, amid geopolitical tensions.  

Sonata Software's shares rose 7% after the company secured a five-year, $73 million contract from a US-based technology, media, and telecom (TMT) company.

Shubham Jain, a SEBI-registered analyst, advised caution on Stocktwits, recommending investors wait for a close above 24,400 before expecting further upward movement.

Globally, sentiment remains mixed. European markets traded higher, while Dow Futures pointed to a muted start on Wall Street. 

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