Indian shares climbed on Monday, driven by gains in the energy sector following a cut in the windfall tax on crude oil. The broader market was also supported by positive sentiment from global equities, as easing inflation concerns and robust US economic data boosted investor confidence. The Nifty 50 index rose 0.23 per cent to 24,599.4, while the S&P BSE Sensex gained 0.14 per cent to 80,540.75. The broader market, represented by the small- and mid-cap indices, also saw gains, with the former rising 1.4 per cent and the latter up 0.75 per cent. The energy sector was the top performer, with Oil & Natural Gas Corp (ONGC) leading the charge with a three per cent gain. Other oil companies like Oil India and Mangalore Refinery also saw significant gains. The government's decision to reduce the windfall tax on crude oil from 4,600 Indian rupees to 2,100 rupees per ton boosted investor sentiment in the sector. Reliance Industries, a major player in the oil-to-telecom conglomerate, added 1.2 per cent to the overall market gains. NTPC, a power generation company, also rose two per cent after being termed the best play on energy transition by brokerage CLSA. While the earnings season has been mixed, analysts remain optimistic about the overall earnings outlook for Indian companies. However, they caution that the market is fairly valued and further upside may depend on improving earnings momentum. In the broader market, food delivery company Zomato gained 2.5 per cent after brokerage UBS reiterated a "buy" rating and raised its target price. The company reported a record number of orders on its quick commerce unit Blinkit. Attribution: Reuters
