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India’s benchmark equity indices surrendered a portion of their early gains on Monday as investors turned cautious and booked profits following a strong start to the session.

The BSE Sensex surged nearly 1,000 points in early trade to touch 77,910.75, while the Nifty 50 climbed close to the 24,300 level, buoyed by supportive domestic cues. However, by mid-afternoon, both indices had eased from their highs. The Sensex was up 334.24 points, or 0.43 per cent, at 77,247.74, while the Nifty traded 113.40 points higher, or 0.47 per cent, at 24,110.95.

Market participants attributed the pullback primarily to profit booking after the initial rally, which had been driven by encouraging April auto sales figures, softer crude oil prices earlier in the day and broadly favourable political signals.

Investor sentiment also remained under pressure due to continued selling by foreign institutional investors. Recent data showed sustained outflows, which have weighed on market momentum and limited the upside.

Political developments, including ongoing vote counting in several states, had a limited and short-lived influence on market direction.

According to V.K. Vijayakumar, chief investment strategist at Geojit Investments, market reactions to election trends are likely to remain temporary, with investors focusing more on global developments, particularly tensions in West Asia.

Currency movements added to the cautious mood. The Indian rupee weakened against the US dollar, reflecting pressure from rising crude oil prices and continued foreign capital outflows. Oil-importing economies such as India remain sensitive to fluctuations in global energy prices.

Brent crude prices edged higher during the session, reversing earlier losses and adding to inflationary concerns. The uptick in oil prices, alongside geopolitical uncertainties, contributed to the subdued sentiment in equities.

From a technical perspective, analysts noted signs of resilience despite the volatility. Anand James, Chief Market Strategist at Geojit Investments, said recent price patterns suggest that bulls are attempting to regain control, although elevated volatility levels may persist in the near term. He indicated that the Nifty could move towards the 25,000–25,600 range, with the immediate trading band seen between 24,050 and 24,350.

Overall, while domestic fundamentals provided early support, global uncertainties and cautious investor behaviour kept gains in check.

With IANS inputs