The Indian stock market ended Monday's volatile session with marginal gains as buying in financial, realty and select heavyweight stocks offset losses in PSU banks and other index constituents. Investors remained cautious ahead of key US inflation data due later this week, while elevated crude oil prices and geopolitical uncertainty continued to weigh on risk appetite.

Key Highlights

• Indian stock market ended marginally higher as financials and realty stocks helped benchmarks recover from early session losses.
• Sensex gained 43 points while Nifty closed above 24,550, with midcaps outperforming despite continued investor caution.

The BSE Sensex rose 43.27 points, or 0.06%, to settle at 78,542.44, after moving between an intraday high of 78,676.98 and a low of 78,298.92. The NSE Nifty 50 gained 13.15 points, or 0.05%, to close at 24,583.80.

The India VIX, a gauge of market volatility, increased 0.49% to 12.22, reflecting continued caution among investors despite the positive benchmark close.

Financials and Realty Stocks Support Benchmarks

The Indian stock market staged a recovery after trading in negative territory during the morning session, with buying emerging in private financial companies and select large-cap stocks. The Nifty Financial Services index gained 0.30%, while Nifty Private Bank advanced 0.52%.

Realty stocks were among the strongest performers, with the Nifty Realty index climbing 1.35%. Consumer Durables gained 0.36%, while IT, Metals and Media stocks also ended higher.

Broader markets continued to show strength, led by midcap stocks. The Nifty Midcap 100 advanced 0.61%, while the Nifty Midcap 50 rose 0.70% and the Nifty Midcap Select index gained 0.58%. In contrast, the Nifty Smallcap 100 declined 0.23%.

Also Read: Sensex and Nifty End Higher Despite Banking Weakness

PSU Banks Drag on Market; Global Cues in Focus

PSU banking stocks remained under pressure, with the Nifty PSU Bank index falling 1.68%, making it the day's worst-performing sector. Healthcare, Pharma, Oil & Gas, FMCG and Auto indices also ended lower.

Among Sensex constituents, Titan emerged as the top gainer, rising 3.14%. Bajaj Finance gained 1.93%, followed by Tata Steel, Asian Paints, Bajaj Finserv and Infosys.

On the losing side, State Bank of India declined 2.25%, while Eternal fell 1.57%. NTPC, ITC, Tech Mahindra and Bharti Airtel also ended lower.

Investors are now awaiting US consumer inflation data, which could influence expectations around the US Fed interest-rate trajectory. Elevated crude oil prices, hovering around $85 per barrel, and uncertainty surrounding the Strait of Hormuz are also likely to keep markets volatile.

Analysts said a softer US yield environment could improve emerging-market sentiment and support foreign institutional investor flows. Meanwhile, India's resilient domestic growth and economic fundamentals continue to provide an underlying support for investor confidence.