Indian equities extend gains as IT stocks lead rally

Indian equity markets began June on a positive note on Monday, with benchmark indices rising nearly 1 per cent in early trade as investors brushed aside concerns over higher crude oil prices and escalating geopolitical tensions in the West Asia.

The BSE Sensex climbed close to 600 points, or 0.8 per cent, to touch an intraday high of 75,367, while the NSE Nifty advanced 185 points, or 0.78 per cent, to trade at 23,733.

The rally was led by information technology stocks, which emerged as the strongest-performing sector during the session. The Nifty IT index gained around 2 per cent, while the Nifty MidSmall IT & Telecom index rose more than 1 per cent. Media, chemicals and metal stocks also traded higher, contributing to the broader market strength.

In contrast, consumer-focused shares remained under pressure. The Nifty FMCG index declined 0.57 per cent, while auto and healthcare stocks traded marginally lower.

Among the major laggards on the Nifty were Hindustan Unilever, which fell more than 1 per cent, and Mahindra & Mahindra, which slipped nearly 1 per cent. Other stocks trading lower included NTPC, Tata Consumer Products, Power Grid Corporation of India and Bharat Electronics.

Market sentiment was also supported by a decline in volatility. India VIX, often referred to as the market's fear gauge, fell more than 1 per cent to around 16, indicating reduced investor anxiety despite global uncertainties.

The gains came even as crude oil prices surged following renewed tensions in the West Asia. International benchmark Brent crude rose 2.63 per cent to $93.52 a barrel, while US benchmark West Texas Intermediate crude climbed more than 3 per cent to $90 a barrel.

Investors are closely monitoring developments involving the United States and Iran after reports of fresh US military strikes on Iranian radar and drone command facilities over the weekend. The attacks followed what Washington described as aggressive actions by Tehran, adding another layer of uncertainty to an already fragile geopolitical environment.

Reports also suggest that US President Donald Trump is considering changes to the framework of a proposed agreement with Iran, while Tehran is reportedly seeking additional amendments, raising questions over the pace and outcome of ongoing negotiations.

Despite these concerns, positive sentiment across Asian markets helped support risk appetite. Major regional indices, including Japan's Nikkei, Hong Kong's Hang Seng and South Korea's KOSPI, traded sharply higher, with gains of up to 4 per cent.

The strong opening suggests investors remain focused on domestic growth prospects and corporate earnings, even as global markets continue to grapple with elevated energy prices and geopolitical uncertainty.

With IANS inputs