The BSE Sensex surged nearly 1,100 points, showing how eager investors were for any positive trigger. By the closing bell, the Sensex settled at 83,878, up 302 points, or 0.36%.
The NSE Nifty50 also staged a strong recovery. After slipping to an intraday low of 25,473.40, it climbed to a high of 25,813.15 before ending the session at 25,790, gaining 107 points, or 0.42%.
The broader market did not fully participate in the rebound. The Nifty MidCap index slipped 0.05%, while the Nifty SmallCap index fell 0.52%.
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Impact on the stock market
Sector-wise performance
Sector-wise, metals led the charge. The Nifty Metal index jumped 2%, supported by strong buying in stocks like Tata Steel, JSW Steel, Hindalco and Coal India. The move came as global commodity prices stabilised and bargain hunting kicked in after recent corrections.
Other pockets of strength included defensive and consumption-linked sectors. The Nifty PSU Bank index and Nifty FMCG index both gained 0.6%, while the Nifty Bank index rose 0.5%. Stocks such as SBI, HUL, Tata Consumer, Nestle India and ICICI Bank featured among the top gainers.
However, the recovery was not evenly spread. The Nifty Realty index fell 1.2%, reflecting continued pressure in real estate stocks. The Nifty Pharma index also slipped 0.4%, as investors booked profits after recent gains.
| Sector/Index | Performance |
| IT & BPM sector | -0.10% |
| Healthcare sector | -0.38% |
| Oil & Gas sector | 0.54% |
| Real estate sector | -1.22% |
| PSU Bank in India | 0.65% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Coal India | 432.30 | 3.33 |
| Tata Steel | 183.24 | 2.71 |
| Asian Paints | 2,896.40 | 2.51 |
| Hindalco | 920.15 | 2.13 |
| Trent | 4,056.40 | 2.10 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Infosys | 1,595.90 | -1.13 |
| TMPV | 350.55 | -1.02 |
| Eicher Motors | 7,436.00 | -0.95 |
| Bajaj Finance | 951.90 | -0.80 |
| Bajaj Auto | 9,491.00 | -0.75 |
Market aftermath: Impact on stocks
IREDA: Strong results lift renewable energy financier
Indian Renewable Energy Development Agency (IREDA) emerged as one of the standout performers of the day, with its shares jumping over 4% after the company reported strong December-quarter results.
IREDA posted a 37.5% year-on-year rise in net profit, which came in at ₹584.91 crore, compared with ₹425.38 crore a year ago. Revenue from operations also impressed, growing 25% year-on-year to ₹2,129.87 crore.
The numbers highlighted the company’s expanding scale. Its loan book grew 28% year-on-year to ₹87,975 crore, while net worth increased 38% to ₹13,537 crore. Net interest income rose nearly 40%, supported by higher disbursements and a better interest spread of 2.63%.
There were some concerns on asset quality, with net non-performing assets inching up from 1.5% to 1.68%, but analysts largely viewed this as manageable. Brokerages noted that margins and earnings appear to be normalising after temporary stress earlier in the year, and the long-term renewable financing story remains intact.
Tejas Networks: Results shock sends stock to new lows
On the other end of the spectrum, Tejas Networks had a bruising session. The stock plunged 13%, hitting a fresh 52-week low of ₹364.25, after the company reported a sharp turnaround from profit to loss.
For Q3 FY26, Tejas posted a net loss of ₹196.55 crore, compared with a profit of ₹165.67 crore in the same quarter last year. Revenue collapsed by more than 88%, falling to ₹306.79 crore.
While the company said its order book stood at ₹1,329 crore and net debt reduced slightly to ₹3,349 crore, the market focused on weak execution and revenue visibility. Even though losses narrowed sequentially from Q2, investors remained wary, given the sharp drop in topline performance.
TCS and HCL Tech: IT stocks stay cautious ahead of earnings
IT majors Tata Consultancy Services (TCS) and HCLTech traded marginally lower as investors stayed on the sidelines ahead of their Q3 results.
TCS shares were down around 0.3% at ₹3,198, with analysts expecting revenue growth of about 4.2% year-on-year, slower than last year’s pace. HCLTech slipped 0.6% to ₹1,652, with most brokerages not expecting any upgrade to its full-year growth guidance.
The broader IT sector continues to face challenges from weak demand in the US, holiday-season shutdowns, and uncertainty around tariffs and visa costs. While global peers like Accenture have flagged rising interest in artificial intelligence-led work, near-term spending remains cautious. Most analysts expect any meaningful recovery to play out gradually into 2026.
DMart: Margins impress, but caution remains
Shares of Avenue Supermarts (DMart) rose nearly 3%, hitting a one-month high after the company delivered a margin-led earnings beat.
For Q3 FY26, DMart reported a 17% year-on-year rise in net profit to ₹856 crore, while revenue grew 13.3% to ₹18,101 crore. Operating margins improved to 8.1%, helped by lower discounting and a favourable product mix.
Despite the solid numbers, brokerages remain divided. Some flagged muted same-store growth of 5.6% and rising competition from quick-commerce platforms. While a few remain cautious or neutral, others see value, with optimistic targets implying over 20% upside from current levels.
Crude oil
Crude oil prices moved higher on Monday morning as geopolitical tensions in the Middle East resurfaced. Brent crude was trading at $63.42 per barrel, up 0.13%, while WTI crude rose 0.41% to $59.18.
Unrest in Iran has now entered its third week, raising concerns over potential supply disruptions. Iran produces around 3.2 million barrels per day, making it a key player in global oil markets. Any prolonged instability could tighten supply further.
Adding to uncertainty, Ukraine continues to target Russian energy infrastructure, while discussions around tougher sanctions on Russian energy exports are gaining traction in the US. At the same time, US officials have hinted that some sanctions on Venezuela could be eased to support oil sales, adding another layer of complexity to the supply outlook.
Back home, January crude futures on MCX traded near ₹5,346, largely flat, while other commodities showed mixed moves. Nickel surged over 6%, while agricultural commodities like guargum and cottonseed oilcake also traded higher.
Conclusion
Monday’s session offered a much-needed pause after a bruising run for Indian markets. The rebound, driven by hopes of US–India trade talks, showed how quickly sentiment can turn when global cues improve. However, the mixed participation across sectors and weak performance in mid- and small-cap stocks suggest that caution is far from gone.
With inflation data and the Union Budget around the corner, investors are likely to stay selective and reactive. For now, the message from the market is clear: relief rallies are possible, but conviction will depend on clarity around growth, policy and global stability.
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