The domestic equity benchmarks staged a sharp rebound on Monday, extending gains for a third straight session. After a weak start, the indices reversed course decisively in the afternoon, driven by reports of a possible Iran-US de-escalation, easing crude prices and supportive global cues. Despite the recovery, sentiment remained cautious ahead of the RBI's monetary policy decision on Wednesday. The Nifty plunged to an intraday low of 22,542.95 in mid-morning trade before rebounding sharply to close at 22,968.25, reflecting a strong late-session recovery. The rally was led by banking and financial services stocks.

The S&P BSE Sensex climbed 787.30 points or 1.07% to 74,106.85. The Nifty 50 index soared 255.15 points or 1.12% to 22,968.25. In three consecutive sessions, the Sensex surged 3% while the Nifty gained 2.85%.

Axis Bank (up 3.94%), Larsen & Toubro (up 3.19%) and HDFC Bank (up 2.68%) boosted the indices today.

Index heavyweight Reliance Industries dropped 3.41% to Rs 1304.75.

In the broader market, the BSE 150 MidCap index surged 1.30% and the BSE 250 SmallCap index jumped 1.10%.

The market breadth was positive. On the BSE, 3,207 shares rose and 1,147 shares fell. A total of 199 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.20% to 25.47.

RBI MPC update:

The Reserve Bank of India's Monetary Policy Committee (MPC) began its three-day deliberations today. It is widely expected to keep the benchmark repo rate unchanged at 5.25% amid heightened global uncertainties.

Economy:

India's services sector saw a slight cooling in momentum in March, with the seasonally adjusted HSBC India Services PMI Business Activity Index easing to 57.5 from 58.1 in February. This marks the slowest pace of expansion in 14 months.

Meanwhile, the HSBC India Composite PMI Output Index fell from 58.9 in February to 57.0, indicating the weakest rate of expansion in nearly three-and-a-half years.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined 0.90% to 7.065 compared with previous session close of 7.129.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 93.0300 compared with its close of 93.1800 during the previous trading session.

MCX Gold futures for 5 June 2026 settlement gained 1.02% to Rs 151,207.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% to 99.92.

The United States 10-year bond yield added 0.02% to 4.348.

In the commodities market, Brent crude for June 2026 settlement lost 57 cents or 0.92% to $108.46 a barrel.

Global Markets:

European market is closed today on account of Easter Monday.

Japan and South Korean stocks rose on Monday, while other Asian shares were closed for holidays. Investors parsed the latest developments in the Middle East conflict over the weekend.

President Donald Trump on Sunday issued a fresh round of threats to attack Iran's power plants and civilian infrastructure starting Tuesday, if Tehran failed to fully reopen the Strait of Hormuz.

The key oil chokepoint between Iran and the Arabian Peninsula handled about one-fifth of the world's oil supplies before the war between U.S.-Israel and Iran started on Feb. 28.

In an expletive-laden social media post, Trump vowed to bring Hell' to Iran after U.S. forces rescued an American airman in Iran last week.

He later posted about a Tuesday 8 P.M. Eastern Time' deadline without elaborating. The White House on Sunday told the media that the date is the new deadline for Iran to reach a deal with the U.S.

Trump said he will hold a press conference with the Military' at the Oval Office at 1 p.m. on Monday.

Iran has pushed back against Trump's ultimatum to reopen the Strait of Hormuz, saying that the critical waterway would only reopen fully after damage from the war is compensated. Tehran has continued strikes on economic and infrastructure targets in the neighboring Gulf region, including Kuwait's oil headquarters.

Eight members of the Organization of the Petroleum Exporting Countries and allies raised their production quotas on Sunday by 206,000 barrels per day for May, though the move appeared largely symbolic as the war has constrained shipments from several members.

On Thursday, the Dow Jones Industrial Average slipped in volatile trading as oil prices surged following President Donald Trump's remarks that the Iran war would continue for weeks.

The blue-chip Dow declined 61.07 points, or 0.13%, closing at 46,504.67. The S&P 500 advanced 0.11% to end at 6,582.69, and the Nasdaq Composite gained 0.18% to settle at 21,879.18.

Stocks in Spotlight:

Tata Motors Passenger Vehicles (TMPV) rose 1.32% after the company's arm, Jaguqar Land Rover (JLR)'s Wholesale volumes increased 61.1% in Q4 FY26, compared to Q3 FY26, supported by recovery in production operations.

HDFC Bank advanced 2.68% after the bank's average deposits jumped 12.8% to Rs 28,51,100 crore crore in Q4 FY26 compared with Rs 25,28,000 crore in Q4 FY25.

Kotak Mahindra Bank added 0.66%. The bank's average total deposits rose 14.9% YoY to Rs 5,38,301 crore as of 31 March 2026, compared with Rs 4,68,486 crore as of 31 March 2025. The bank's average CASA deposits stood at Rs 2,11,898 crore as of 31 March 2026, registering a 12.7% YoY growth and a 1.9% QoQ rise.

IndusInd Bank gained 0.87%. The bank reported a 2.6% decline in deposits to Rs 4,00,178 crore as of 31 March 2026, compared with Rs 4,10,862 crore as of 31 March 2025. Retail deposits and deposits from small business customers stood at Rs 1,91,276 crore as of 31 March 2026, compared with Rs 1,85,180 crore as of 31 March 2025.

Axis Bank rallied 3.94% after the bank reported steady growth in key business metrics for the quarter ended 31 March 2026, driven by continued traction in advances and deposits. Total deposits rose to Rs 13,35,800 crore, up 6.0% QoQ and 13.9% YoY. Gross advances stood at Rs 12,44,200 crore as of 31 March 2026, registering a 6.3% quarter-on-quarter (QoQ) rise and an 18.4% year-on-year (YoY) increase, reflecting sustained credit demand.

AU Small Finance Bank rose 1.79% after the bank reported a 22.8% YoY growth in total deposits to Rs 1,52,660 crore as of 31 March 2026, compared with Rs 1,24,269 crore as of 31 March 2025.

RBL Bank jumped 5.83% after the bank's total business as 31 March 2026 rose to Rs 2.54 lakh crore, reflecting a growth of 24% from Rs 2.05 lakh crore as on 31 March 2025.

Union Bank of India advanced 1.05% after the bank reported a 10.06% increase in domestic advances to Rs 10,41,122 crore as of 31 March 2026, compared with Rs 9,45,975 crore as of 31 March 2025.

Suryoday Small Finance Bank (SFB) jumped 4.74% after the company's total deposits climbed 32% to Rs 13,958 crore in Q4 FY26 comapred with Rs 10,580 crore in Q4 FY25.

Bank of Baroda gained 4.06% after the bank reported a 16.23% increase in global advances to Rs 14,30,204 crore as of 31 March 2026, compared with Rs 12,30,461 crore as of 31 March 2025. Global deposits increased 12.00% YoY to Rs 16,48,650 crore as of 31 March 2026, up from Rs 14,72,035 crore in the same period last year.

UCO Bank added 1.88%. The company reported robust growth in key business metrics for the quarter ended 31 March 2026, driven by strong traction in both advances and deposits.

L&T Finance jumped 6.36% after the company's retail disbursement climbed 62% to Rs 24,080 crore in Q4 FY26, compared with Rs 14,899 crore recorded in Q4 FY25.

Bajaj Auto rose 2% after the company reported a 20% increase in total auto sales to 4.45 lakh units in March 2026, compared with 3.69 lakh units sold in March 2025.

Avenue Supermarts (DMART) jumped 4.38% after the company reported a 18.96% jump in standalone revenue to Rs 17,204.50 crore in Q4 March 2026 compared with Rs 14,462.39 crore posted in corresponding quarter last year.

Senco Gold zoomed 12.12% after the company's standalone revenue jumped 46% YoY, led by wedding season. On annual basis, the company achieved revenue growth of 35% in FY26 comapred with 21% in FY25.

Vedanta added 0.32%. The company's aluminium production jumped 2% to 613,000 tonnes in Q4 FY26, compared with 604,000 tonnes posted in Q4 FY25, supported by majorly through operational efficiencies.

FSN E-Commerce Ventures (Nykaa) surged 2.72% after it has reported a strong operational performance for the quarter ended 31 March 2026, with consolidated GMV growth in the high twenties and net sales value (NSV) growth in the low thirties.

Aurobindo Pharma rose 0.09% to Rs 1337.20. The company said its board has approved a share buyback of up to Rs 800 crore at a price of Rs 1,475 per equity share through the tender offer route. The company plans to repurchase up to 54,23,728 fully paid-up equity shares, representing about 0.93% of its total paid-up equity capital. As per the latest available shareholding data, promoters and promoter group entities hold a 51.82% stake in the company.

NMDC rose 4.45% after the company announced a sharp increase in iron ore prices. The company has revised the price of Baila lump ore (65.5%, 10-40 mm) to Rs 5,300 per tonne from Rs 4,800 earlier, marking an increase of about 10.4%. Prices of Baila fines (64%, -10 mm) have been raised to Rs 4,500 per tonne from Rs 4,050, reflecting an increase of around 11.1%. The revised prices came into effect from 5 April 2026 and are exclusive of royalty, levies and other applicable taxes.

TVS Motor Company rose 2.97% to Rs 3,491 after a foreign brokerage upgraded the stock to 'Buy' from 'Neutral', citing strong growth visibility and improving fundamentals. The brokerage has set a target price of Rs 4,100, implying an upside potential of about 18% from current levels. It highlighted superior volume visibility for the company compared to peers, driven by upcoming premium product launches across motorcycles and global brands.

Diamond Power Infrastructure rose 3.39% after the company announced multiple order wins from Adani group entities. The company said it has received three separate letters of intent aggregating to approximately Rs 163 crore.

PNGS Reva Diamond Jewellery gained 4.01% after the company's revenue from operations (including gold sales) surged 139.07% to Rs 138.2 crore in Q4 FY26, compared with Rs 57.81 crore in Q4 FY25. Revenue growth excluding gold sales stood at 96.90% YoY in Q4FY26, reflecting the company's strength as a diamond jewellery retailer, supported by increased consumer demand, healthy volume growth and newly formed strong brand affinity.