Indian Stock Markets Stage Strong Comeback with Nearly 1% Gains
Equity benchmark indices in India witnessed a significant rebound on Monday, with both the Sensex and Nifty surging by nearly 1 per cent. This sharp recovery snapped a three-day losing streak, fueled by aggressive buying in key sectors such as power, banking, and financial stocks. The positive momentum was supported by favorable global conditions, including easing US bond yields and expectations of monetary easing.
Detailed Performance of Major Indices
The 30-share BSE Sensex jumped 650.39 points, or 0.79 per cent, to close at 83,277.15. Meanwhile, the broader 50-share NSE Nifty climbed 211.65 points, or 0.83 per cent, settling at 25,682.75. This marked a notable turnaround from Friday's session, where the Sensex had plunged 1,048.16 points and the Nifty tumbled 336.10 points.
Top Gainers and Losers Driving Market Movement
PowerGrid emerged as the standout performer among Sensex constituents, rallying 4.45 per cent. Other major gainers included HDFC Bank, Axis Bank, NTPC, ITC, Asian Paints, Bajaj Finserv, Bharti Airtel, Adani Ports, Tata Steel, Kotak Mahindra Bank, Reliance Industries, and State Bank of India. On the Nifty 50, top gainers featured Power Grid, Coal India Ltd, HDFC Bank, Adani Ent., and Max Healthcare, with gains ranging from 1.56% to 4.64%.
Conversely, Tech Mahindra, Maruti Suzuki India, Bajaj Finance, Trent, Mahindra & Mahindra, Titan, Infosys, ICICI Bank, and UltraTech Cement ended as laggards. Top losers on the Nifty 50 included Tech Mahindra, Maruti Suzuki, Bajaj Finance, Tata Motors PV, and M&M, with declines up to 1.42%.
Expert Insights on Market Dynamics
Vinod Nair, Head of Research at Geojit Investments Ltd, commented on the market's performance. He noted, "After a range-bound opening, domestic markets edged higher, supported by renewed buying interest in banking and power stocks. The power sector gained on expectations of sustained demand momentum. At the same time, improved loan growth and stable asset quality bolstered confidence in banks."
Nair further highlighted the impact of global factors, stating, "Meanwhile, stability in the rupee and range-bound crude oil prices ahead of US-Iran talks are offering additional support to domestic equities."
Global Market Context and Influences
In global markets, easing US bond yields and anticipation of monetary easing provided a supportive backdrop. A continued decline in the US 10-year yield, following benign inflation data, strengthened hopes of a Federal Reserve rate cut later this year. Investors are now awaiting the upcoming Fed minutes for further cues.
Asian markets ended mixed, with Hong Kong's Hang Seng rising 0.52 per cent and Japan's Nikkei 225 slipping 0.22 per cent. Markets in China and South Korea were closed for Lunar New Year holidays. European markets traded higher in mid-session deals, while US equities finished on a mixed note on Friday.
Institutional Activity and Commodity Trends
According to exchange data, foreign institutional investors offloaded equities worth Rs 7,395.41 crore on Friday, whereas domestic institutional investors bought shares worth Rs 5,553.96 crore. In commodity markets, Brent crude, the global oil benchmark, slipped 0.24 per cent to USD 67.59 a barrel.
Overall, the Indian stock market's rebound reflects a combination of sector-specific optimism and favorable global economic indicators, setting a positive tone for the trading week ahead.
