Markets kicked off the week on a decisive note Monday, with the benchmark Nifty 50 breaking out of a nearly four-month consolidation range as easing Middle East tensions, a sharp crude oil sell-off, and the debut of a new market closing mechanism combined to reshape the intraday landscape in the final minutes of trade.The Nifty 50 closed at 24,774.30, up 390.70 points or 1.60 per cent, settling at the day’s high after a sharp 200-point surge in the closing minutes. The Sensex gained 0.70 per cent to end at 78,639. Monday also marked the first session under the new Closing Auction Session (CAS) framework, which concentrates end-of-day order execution into a 20-minute window, a structural shift that analysts say amplified the late-session move rather than reflected a gradual intraday trend change. Nifty August futures settled at 24,664.90, up 0.87 per cent.“Markets kicked off the week on a strong note, with benchmark indices extending their gains amid easing crude oil prices, encouraging quarterly earnings, and sustained buying in financial heavyweights,” said Ajit Mishra, SVP Research, Religare Broking.Bank Nifty outpaced the broader market, climbing 983 points or 1.72 per cent to close at 58,247.95, breaking above its 20-day simple moving average. The Nifty Midcap 100 gained 1.21 per cent, touching a fresh all-time high of 63,682, while the Smallcap 100 advanced 1.29 per cent, now just 0.65 per cent below its record high. Market breadth was firmly positive, with 393 of the Nifty 500 stocks ending in the green.On the sectoral front, Nifty IT led gains, rising over 2.5 per cent, followed by Nifty Tourism. Banking, FMCG, and Metal also saw strong buying. Nifty Media was the lone notable laggard. Among individual stocks, Grasim and TCS were the top Nifty gainers, each rising over 4 per cent, while Apollo Hospitals and Sun Pharma ended lower.The rally was underpinned by a sharp reversal in global crude oil prices. Brent crude slumped more than $4 a barrel to below $84, while WTI fell around 8 per cent to near $80, after US President Trump opted for diplomacy over military action against Iran. Fresh US-Iran talks began Monday, with Saudi Arabia having urged Washington toward negotiation, reducing fears of supply disruptions through the Strait of Hormuz. OPEC+ also approved a modest quota increase, adding further downward pressure on prices.Gold firmed modestly, with spot prices up around 0.4 per cent near $4,055 per ounce, supported by a softer dollar. The US dollar index eased to around 100.60, partly dragged lower by Japan’s yen-support operations, including the first joint US-Japan yen-buying intervention since 1998. The rupee traded with a positive bias near 85.35, gaining around 0.12 per cent against the dollar, benefiting from softer crude prices and the weaker greenback.Separately, a Nifty 50 earnings analysis for July 2026 showed that FY27 and FY28 EPS estimates fell 0.7 per cent and 0.5 per cent month-on-month respectively, with 58 per cent of index constituents seeing earnings cuts. Metals, telecom, cement, and pharmaceuticals recorded the steepest downgrades, while insurance and infrastructure saw upgrades.Looking ahead, market participants will closely track the RBI’s monetary policy decision this week, with the central bank’s tone expected to set near-term direction for both equities and the rupee. Globally, the US data calendar, including JOLTS, ADP employment, and Friday’s nonfarm payrolls report, could reset rate expectations. Markets are currently pricing close to a two-thirds probability of a US Federal Reserve rate hike in September. Technically, analysts see the next major resistance for Nifty in the 24,900–25,200 zone, with support established in the 24,500–24,555 band.Published on August 3, 2026