The Indian equity markets sustained their upward momentum for a second consecutive session on Monday, December 22, closing at fresh highs. The rally was powered by a decisive shift in foreign institutional investor (FII) activity and robust buying in technology and metal stocks.
Indices Surge as Foreign Investors Return
After a period of selling pressure in the first half of the month, overseas investors turned net buyers in the last three trading sessions. This reversal injected fresh optimism into the market. Provisional data from the exchanges showed that FIIs pumped in a cumulative ₹3,596 crore during this period, a move that coincided with a sharp recovery in the Indian rupee.
The benchmark Nifty 50 index, after gaining 0.56% in the previous session, advanced another 0.79% to close at 26,172, decisively reclaiming the psychologically important 26,000 mark. The S&P BSE Sensex mirrored the bullish sentiment, jumping 0.75% to settle at 85,567.
Broad-Based Rally Across Sectors
The market upmove was not confined to the large-cap indices. Broader market participation was strong, with the Nifty Midcap 100 and Nifty Smallcap 100 indexes outperforming. The midcap index surged 0.76%, while the smallcap index posted an even stronger gain of 1.07%.
All major sectoral indices ended the day in positive territory. The Nifty IT index was the top performer, surging 2%, indicating renewed investor confidence in the technology sector. It was closely followed by gains in Nifty Chemicals, Nifty Metal, Nifty Auto, and Nifty Pharma, which all rose between 0.7% and 1.4%.
Key Stocks in Focus
Among individual stocks, several names stood out as top gainers during the session. Shares of Jupiter Wagons, Cochin Shipyard, Multi Commodity Exchange (MCX), National Aluminium Company (Nalco), Trent, and Wipro were among the prominent advancers, reflecting the broad-based nature of the rally that spanned sectors from industrials and shipping to IT and retail.
The strong performance on Monday sets a positive tone for the truncated holiday week, with market participants keenly watching the continued flow of foreign funds and global cues for further direction.
