Indian equity benchmarks Sensex and Nifty traded higher on Monday, extending gains from the previous session, driven by a rally in Adani Group stocks after a relief in the US Securities and Exchange Commission (SEC) case. The BSE Sensex rose over 300 points in early trade, while the NSE Nifty breached the 22,000 mark.
Adani Group Stocks Surge
Adani Group stocks witnessed a sharp uptick, with flagship Adani Enterprises gaining over 5%, followed by Adani Ports and Adani Green Energy. The rally came after reports suggested that the US SEC had not sought any immediate penalties or restrictions on the conglomerate in its ongoing probe, easing investor concerns.
Market Sentiment Improves
The broader market also reflected positive sentiment, with the BSE Midcap and Smallcap indices rising nearly 1% each. Analysts attributed the uptick to short-covering and value buying at lower levels, along with positive global cues.
Global Cues Supportive
Asian markets traded mixed, but European futures indicated a positive start. Meanwhile, US stock futures edged higher, providing additional support to domestic indices.
Sectoral Performance
- Banking: Nifty Bank index rose 0.5%, led by HDFC Bank and ICICI Bank.
- IT: IT stocks remained subdued, with Infosys and TCS trading flat.
- Auto: Auto stocks gained, with Maruti Suzuki and Tata Motors up over 1%.
Experts remain cautious about the sustainability of the rally, citing global macroeconomic uncertainties and domestic inflation concerns. However, the relief on the Adani front has provided a temporary boost to market sentiment.
