Nifty Next 50 index soars 4%, hits 52-wk high led by rate sensitive stocks

Nifty Next 50 index hit a 52-week high of 73,098.9, surging 4% on the National Stock Exchange in Monday's intra-day, and has soared 7% in the past two trading days.

Nifty Next 50 index hit a 52-week high at 73,098.95, surging 4 per cent on the National Stock Exchange (NSE) in Monday’s intra-day led by rate-sensitive sectors such as financials, auto and realty. The Nifty Next 50 index surpassed its previous high of 72,442.15 touched on May 29, 2026. The index had hit a record high of 77,918 on September 27, 2024.

 

Nifty Next 50 index was quoting higher for the second straight trading day, rallying 7 per cent during the period.  At 02:27 PM; Nifty Next 50 index was the top gainer among the indices eligible in derivatives, up 2.7 per cent at 71,925.85. In comparison, the Nifty 50 was up 1.2 per cent at 23,908.50.

 

 

Tata Motors Commercial Vehicles, HDFC Asset Management Company (AMC), Cholamandalam Investment and Finance Company, Indian Oil Corporation, DLF, Lodha Developers, TVS Motor Company, Bharat Petroleum Corporation, Tata Capital, Samvardhana Motherson International and Shree Cement from the Nifty Next 50 index surged between 4 per cent and 9 per cent.

 

The Nifty 50 staged a strong comeback in the past two trading days as aggressive short covering, improving global risk sentiment and easing geopolitical tensions triggered broad-based buying across sectors. Investor confidence strengthened after reports of a US-Iran peace agreement, while softer crude oil prices and a sharp recovery in the rupee further lifted sentiment. 

 

The positive momentum has further strengthened after the weekend developments, with the US and Iran reaching an agreement to end hostilities and the reopening of the Strait of Hormuz expected to ease supply concerns. Brent crude, already under pressure after last week's sharp decline, is likely to remain subdued, which is a significant positive for India's macroeconomic outlook through lower inflationary pressures and a reduced import bill, said Rajesh Palviya, Head of Research, Axis Direct.

 

Investors should continue to monitor crude oil prices and developments surrounding the implementation of the geopolitical agreement, as any unexpected setback could temporarily weigh on market sentiment, said Rajesh Palviya.

 

US and Iran reaching a peace deal which includes immediate reopening of Strait of Hormuz, is expected to result in improved oil flows for India and sharp correction in Brent crude prices. This is a big positive for airlines, auto & tyre players, paint and chemical companies among others, said analysts at ICICI Securities.

 

Meanwhile, as per media reports, banks could save around ₹4,000 crore annually by mobilising funds through the RBI’s special FCNR(B) deposit scheme instead of domestic term deposits, as the central bank bears the entire hedging cost while exempting such deposits from CRR and SLR requirements. Industry estimates suggest FCNR(B) inflows of $35–45 billion (≈₹3.29–4.23 trillion), which could provide durable liquidity and ease funding pressures. At a 6 per cent FCNR(B) rate versus domestic fixed deposit rates of 6.3–7.1 per cent, banks could materially reduce funding costs and improve balance-sheet efficiency. Expected inflows of around ₹3.8 trillion would account for nearly 12 per cent of the projected incremental deposit mobilisation for FY27, although part of the inflows may come from the reallocation of existing NRE and NRO deposits, the brokerage firm said in a note.

 

Further, the decline in energy prices is a significant positive for the Indian economy, as it is expected to lower the country's import bill, ease inflationary pressures, improve corporate profitability, and support the current account balance.  The sharp correction in crude oil prices has also improved the broader macroeconomic outlook, strengthening investor confidence and supporting expectations of improved earnings growth across several sectors. Oil-sensitive sectors such as aviation, oil marketing companies, paints, chemicals, and consumer-focused industries are likely to benefit from the softer crude environment, said Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm.

 

Overall, market sentiment has turned decisively positive following the reported US–Iran agreement and the sharp decline in crude oil prices. The development represents a major positive catalyst for both global and domestic markets and has the potential to trigger a broad-based relief rally across sectors. However, investors will continue to monitor the formal signing of the agreement and the reopening of the Strait of Hormuz for confirmation that the de-escalation process remains on track. 

 

Additionally, while Foreign Institutional Investor (FII) selling has moderated in recent sessions, institutional flows remain an important factor to watch, as sustained foreign participation will be crucial in supporting a stronger and more durable market rally, said Ponmudi R.  =======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.