Sectoral gains broad-based, cyclicals lead as policy relief and oil decline support sentiment

The opening session of the new financial year saw participation across sectors, with gains led by cyclical stocks that had borne the brunt of the recent correction.

Banking, metals, real estate and information technology counters moved higher in tandem, reflecting a shift towards riskier segments of the market. The breadth of the rally suggested that the recovery was not confined to a handful of large-cap names but extended across the broader market.

Shares linked to capital market activity were among the notable gainers after the Reserve Bank of India signalled a delay in the implementation of tighter regulatory norms. The move was seen as providing near-term relief to brokerages and related intermediaries, which had faced pressure amid concerns over stricter compliance requirements.

Aviation stocks also witnessed buying interest, supported by a moderation in crude oil prices. Lower fuel costs are expected to ease margin pressures for airlines, a sector that remains highly sensitive to fluctuations in energy prices.

Stock-specific developments added to the momentum. Updates around management changes, acquisitions and earnings outlooks kept select counters in focus, contributing to trading volumes during the session.

Analysts said the outperformance of cyclicals points to a tentative return of risk appetite after a volatile March. However, they cautioned that sustainability will depend on continued support from global cues and stability in commodity prices.

The day’s movement indicates a market attempting to rebuild confidence, with investors selectively returning to sectors aligned with economic growth expectations.