India's benchmark equity indices, the Sensex and Nifty, continued their upward trajectory for a second consecutive trading session on Monday, buoyed by growing optimism surrounding a potential India-US trade agreement and robust buying activity in key sectors such as public sector banks, consumer durables, and real estate stocks.
Market Performance Highlights
The 30-share BSE Sensex surged by 485.35 points, representing a gain of 0.58 percent, to close at 84,065.75. During the trading day, the benchmark index experienced a significant rally, climbing 734.28 points or 0.87 percent to reach an intraday peak of 84,314.68.
Similarly, the broader 50-share NSE Nifty advanced by 173.60 points, or 0.68 percent, settling at 25,867.30. In intraday trade, the Nifty index ascended 228.55 points, equivalent to 0.88 percent, hitting a high of 25,922.25.
Top Performers and Decliners
On the Nifty50, the top gainers included State Bank of India (SBI) with an impressive rise of 7.64 percent, followed by Shriram Finance at 6.04 percent, Grasim Industries at 3.16 percent, Titan Company at 3.10 percent, and Dr Reddy's Laboratories at 2.81 percent. Other notable gainers were UltraTech Cement, Hindalco Industries, Tata Motors, Tata Steel, and Eternal.
Conversely, the Nifty50's top losers featured Max Healthcare Institute declining by 2.88 percent, NTPC down 1.06 percent, Power Grid Corporation falling 1.03 percent, ITC dropping 0.93 percent, and ONGC slipping 0.84 percent. Additional decliners included ICICI Bank, Infosys, Nestle India, Coal India, and Wipro.
For the BSE Sensex, the leading gainers were SBI (7.64 percent), Titan Company (3.10 percent), UltraTech Cement (2.57 percent), Tata Steel (2.19 percent), and Eternal (1.82 percent). The top losers on the Sensex comprised NTPC, Power Grid, ITC, ICICI Bank, and Infosys.
Expert Insights and Market Sentiment
Vinod Nair, Head of Research at Geojit Investments Ltd, commented on the market dynamics, stating, "Positive signals from the trade deal, coupled with the return of Foreign Institutional Investors (FIIs), fuelled a risk-on sentiment in the market. Investors are closely watching upcoming results, with PSU banks delivering stronger-than-anticipated performance, helping the PSU bank index outperform."
Nair further elaborated, "An accumulation strategy was observed in consumer durables and real estate stocks after the recent correction, driven by expectations of a demand revival. The recovery was broad-based, with sectors such as cement, capital goods, textiles, and consumer discretionary attracting investor interest, supported by union budget proposals and favourable trade deals."
Global Market Context
In Asian markets, Japan's Nikkei 225 index, South Korea's Kospi, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index all ended the day higher. European markets were trading in positive territory, while US markets had closed higher on the previous Friday.
On the commodities front, Brent crude, the global oil benchmark, declined by 0.81 percent to $67.52 per barrel. In terms of foreign investment, Foreign Institutional Investors (FIIs) purchased equities worth Rs 1,950.77 crore on Friday, according to exchange data.
The overall market sentiment remains cautiously optimistic, with investors closely monitoring developments in trade negotiations and corporate earnings. The resurgence in PSU bank stocks, along with renewed interest in consumer durables and realty sectors, indicates a shift towards value buying and anticipation of economic recovery.
