Indian shares advance on bargain buying after recent slide

Indian stocks saw a modest increase on Monday, buoyed by bargain-hunting following recent declines and increased trading in the primary market, which dampened the gains. The Nifty 50 index climbed 0.29% to 23,414.30, while the BSE Sensex added 0.76% to 74,858.99. They had both risen 0.35% and 0.81% before the market's closing bell.

Both indices have slipped for six consecutive weeks, marking the longest losing streak in six years. President Donald Trump cautioned Tehran that Tehran would face economic turmoil or a leadership change unless it reaches an agreement, and Iran's military threatened a stern response to any fresh attack. Nevertheless, oil prices dipped to their lowest level in 11 days, as traders anticipated that the upcoming UN meeting might result in diplomatic progress.

A partial rebound in Saudi oil shipments also helped offset concerns over persistent Houthi attacks. Aishvarya Dadheech, founder and chief investment officer at Fident Asset Management, explained that the dip in crude prices, combined with Moody's revised forecast for domestic growth, and the recent market slide have attracted investors to big-cap stocks, leading to a boost in the benchmarks.

However, she cautioned that lingering uncertainty in the Middle East and tighter monetary policy worldwide will ensure that caution prevails in the near term. The National Stock Exchange of India's $2.3 billion IPO concluded later that day after being fully subscribed on Friday. Twelve of the 16 major sectors gained ground in the market.

Among the major stocks, HDFC Bank and ICICI Bank rose slightly by 1.2% and 0.5%, while Reliance Industries climbed 1.7%. All three of these companies hold significant weights in the indices. Among the individual stocks, Welspun Corp surged 3.9% after its unit, East Pipes Integrated Company, secured a contract from Saudi Aramco worth around $209 million.

Logistics firm Leap India also saw a 3.9% gain after UBS began covering the stock with a "buy" rating, describing it as an investment in the modernization of India's supply chain. Indian Hotels Co. also rose 1.7% after Morgan Stanley upgraded its shares to "overweight" from "equal-weight," citing a stable outlook for earnings.