Sensex rises 600 points as Sun Pharma sparks rebound

Market rebound after three sessions of losses

Indian equities opened the week on a stronger footing after three straight sessions of declines, with benchmarks recovering on a mix of global cues and stock-specific triggers. Reports pointing to an Iran peace proposal were cited among factors supporting sentiment, alongside a bounce in beaten-down information technology shares. Traders were also tracking signals from GIFT Nifty, which indicated a higher start after the previous week’s sharp sell-off. The rebound came even as crude oil remained elevated, keeping risk appetite in check. In early trade, gains were broad-based with most major sectors in the green. The move also brought the Nifty back above the 24,050 mark in the morning session.

Opening levels: Sensex and Nifty push higher

In early trade, the S&P BSE Sensex was up by 523.17 points at 77,187.38, while the NSE Nifty50 jumped 158.35 points to 24,056.30 as of 9:22 am. A Reuters update later showed the Nifty 50 up 0.67% at 24,057.45 and the BSE Sensex up 0.67% at 77,183.24 as of 10:30 a.m. IST. The day’s rise followed a steep, short stretch of declines, with both benchmarks down about 2.7% each over the prior three sessions. The earlier fall was linked to higher crude prices amid geopolitical tensions. Monday’s move, therefore, was watched as a test of whether dip-buying would persist.

Two key drivers: IT rebound and pharma surge

The market’s upswing was supported by a partial recovery in information technology stocks after a sharp slide. Reuters noted the IT index rose 2%, snapping a three-session fall of 10.1% that was triggered by weak growth forecasts from Infosys and HCLTech. At the same time, pharma outperformed as Sun Pharmaceutical Industries rallied sharply following a major acquisition announcement. The combination of an IT bounce and pharma strength helped lift headline indices and supported risk appetite across sectors. Fourteen of the 16 major sectors logged gains in the Reuters report, signalling breadth rather than a narrow rally.

Sun Pharma’s Organon deal: what was announced

Sun Pharma climbed about 9% after it said it would acquire U.S.-listed drugmaker Organon & Co. in an all-cash deal valued at $11.75 billion, including debt. Another reference in the same set of updates described the transaction as about a $11.8 billion deal, pointing to rounding in market reporting. The acquisition was described as Sun Pharma’s biggest in its history. The pharma index rose 3% as the deal lifted sentiment across the sector. One analyst comment cited in the report said the merger would place Sun Pharma among the top 25 global pharma companies, with combined revenue of $12.4 billion.

Crude oil stays high as geopolitics remains in focus

Despite the rebound in equities, crude oil prices were a key overhang. Reuters said Brent crude traded around $107 a barrel after U.S.-Iran peace negotiations stalled. The market’s earlier three-session decline was linked to higher crude prices tied to the Iran war, highlighting how closely domestic risk sentiment has tracked energy markets. A separate market note also flagged that rising crude could cap upside for domestic equities even if global cues improve. The interaction between oil, geopolitics, and inflation expectations remained central to near-term positioning.

Sector check: metals, autos, energy and broader indices

Beyond IT and pharma, metals gained 2%, while auto and energy were up about 1% each in the Reuters snapshot. The broader market also participated, with small-caps rising 1.5% and mid-caps up 1.3%. That broader strength suggested investors were selectively adding risk after the recent sell-off. Still, the presence of crude-led uncertainty meant traders continued to watch whether gains would hold beyond the opening hours.

Stock-specific moves: Reliance, Paytm, Axis Bank

Among individual stocks, Reliance Industries reversed early losses of about 1% to trade 0.6% higher, even though it missed quarterly profit estimates, according to Reuters. The report also noted Reliance had fallen 2.5% over the prior two sessions.

Separate market buzz items also highlighted sharp moves in individual counters: Paytm was reported up about 8% after the RBI cancelled the licence for a payments bank, while Axis Bank shares were reported down about 5% following a weak March quarter. These stock moves, alongside index-level gains, reflected a session where company-specific news played a major role in price action.

Flows and volatility: FII pressure in the backdrop

Alongside global cues, investor flows remained in focus. One market preview note said foreign institutional investors (FIIs) continued selling, while domestic institutional investors (DIIs) provided support through buying. In another session update, Dr. VK Vijayakumar of Geojit Investments Limited highlighted that a reported FII sell figure of Rs 10,016 crores was a major reversal versus heavy buying seen in May, and warned that sustained selling could impact markets. Volatility indicators also featured in coverage, with one note saying India VIX jumped 1.86%, pointing to elevated uncertainty.

Key numbers at a glance

Why this session matters for investors

The day’s rebound showed that markets can stabilise quickly when two heavyweight segments, IT and pharma, move together. IT’s snap-back mattered because the sector had seen a steep three-session fall, while Sun Pharma’s surge highlighted how large corporate actions can lift an entire index group. At the same time, the persistent focus on Brent near $107 underscored that macro risks had not disappeared. The breadth of gains across sectors and in mid- and small-caps suggested improved risk appetite, but the backdrop of FII selling and higher volatility kept the tone cautious.

What to watch next

Investors will continue to track crude oil moves and developments around U.S.-Iran negotiations, given their recent influence on domestic equities. Market participants are also likely to watch follow-through in IT after the sharp reversal, and further details and regulatory steps related to Sun Pharma’s Organon transaction. With company-specific news driving sharp moves in counters like Paytm and Axis Bank, earnings and regulatory headlines are expected to remain key catalysts in the near term.