The Indian equity markets witnessed a strong resurgence during Monday’s trading session, effectively snapping a multi-day losing streak. The BSE Sensex closed at 83,277.15, marking a significant gain of 650.39 points or 0.79 percent. Simultaneously, the NSE Nifty 50 demonstrated robust momentum, settling at 25,682.75, an increase of 211.65 points or 0.83 percent. This recovery comes as a relief to investors after recent volatility, driven primarily by aggressive value buying in heavyweight banking and power stocks.
Sectoral Heavyweights Drive the Rebound
The rally was spearheaded by significant gains in the banking and energy sectors. Power Grid Corporation of India emerged as the session’s top performer, with its share price rising by over 4.4 percent following positive sentiment around infrastructure projects and energy demand. HDFC Bank, a major heavyweight in the banking index, surged by more than 2.2 percent, providing the necessary institutional support to pull the benchmark indices out of their early-morning lows.
Banking stocks across the board showed resilience, with Axis Bank and State Bank of India also ending the day in the green. The Nifty Bank index outpaced the broader market, gaining approximately 1.2 percent. Analysts pointed toward improved credit growth outlooks and stable asset quality as the primary catalysts for the renewed interest in financial lenders.
Market Breath and Sectoral Divergence
While the headline indices posted impressive gains, the internal market dynamics remained selective. The power, realty, and healthcare sectors performed exceptionally well, with indices like Nifty Realty and Nifty Pharma posting gains of over 1 percent. In contrast, the automotive and information technology sectors faced some resistance. Tech Mahindra and Maruti Suzuki were among the notable laggards, as profit-booking and cautious global cues regarding the tech industry weighed on these segments.
The broader market reflected a more cautious stance compared to the benchmarks. While the Nifty Midcap 100 index gained about 0.5 percent, the Smallcap index remained relatively flat, indicating that the day’s rally was largely concentrated in large-cap stocks and established industry leaders.
Global Cues and Economic Outlook
The positive domestic trend was further supported by stabilizing global factors. A slight decline in U.S. 10-year Treasury yields and benign inflation data from international markets bolstered expectations for future interest rate cuts by the Federal Reserve. Regionally, Asian markets presented a mixed picture, with Hong Kong’s Hang Seng index trading higher while Japanese indices saw marginal declines. Domestically, investors are closely monitoring the stability of the Indian Rupee and range-bound crude oil prices, both of which provided a neutral-to-positive backdrop for the session’s gains.
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