Indian stock markets continued their upward momentum for the third consecutive session on Monday, with the BSE Sensex and NSE Nifty closing higher, driven by stability in global crude oil prices near the $80 per barrel mark. Buying interest in banking, auto, and IT stocks further bolstered the market sentiment.
Market Performance
The 30-share BSE Sensex climbed 345.67 points, or 0.56%, to settle at 62,184.75. The broader NSE Nifty rose 98.30 points, or 0.53%, to close at 18,456.70. During the day, both indices touched their intraday highs of 62,250.12 and 18,475.30 respectively.
Key Drivers
Crude oil prices remained near $80 per barrel, providing relief to markets concerned about inflationary pressures. The stability in oil prices is seen as positive for India, a major importer of crude, as it helps contain the trade deficit and inflation. Additionally, positive cues from global markets and sustained buying by domestic institutional investors supported the rally.
Sectoral Trends
Among sectoral indices, the Nifty Bank rose 0.8%, led by gains in ICICI Bank, HDFC Bank, and Axis Bank. The Nifty Auto index also gained 0.7%, with Maruti Suzuki and Mahindra & Mahindra contributing to the rise. IT stocks witnessed buying interest, with the Nifty IT index up 0.5%.
Broader Market
The broader market indices also performed well, with the BSE Midcap index rising 0.6% and the BSE Smallcap index gaining 0.7%. Market breadth was positive, with 1,872 stocks advancing against 1,456 declining on the BSE.
According to market analysts, the near-term outlook for the market remains positive, supported by stable crude oil prices, strong domestic fundamentals, and expectations of a normal monsoon. However, they caution that global factors such as the US Federal Reserve's interest rate decisions and geopolitical tensions could influence market direction.
