Indian stock markets rebounded on Monday, with the benchmark Sensex climbing 117 points to close at 62,000, driven by fag-end buying in banking and IT stocks. The Nifty also gained 35 points to settle at 18,400. The recovery came after a weak start, as investors shrugged off mixed global cues and focused on domestic fundamentals.
Market Performance
The BSE Sensex opened lower but recovered in the last hour of trade, closing at 62,000.07, up 117.29 points or 0.19%. The broader NSE Nifty ended at 18,400.05, gaining 35.10 points or 0.19%. Among the Sensex constituents, 21 stocks closed in the green, led by HDFC Bank, ICICI Bank, and Infosys.
Sectoral Trends
Banking stocks were the top gainers, with the Nifty Bank index rising 0.5%. IT stocks also saw buying interest, with the Nifty IT index up 0.3%. However, auto and pharma stocks faced selling pressure. The broader market also showed strength, with the BSE Midcap and Smallcap indices rising 0.2% each.
Drivers of the Rally
Analysts attributed the late buying to short-covering ahead of the monthly derivatives expiry. Positive cues from European markets also boosted sentiment. However, concerns over global interest rates and geopolitical tensions limited the upside. The Indian rupee remained stable at 82.50 against the US dollar.
Outlook
Market participants now await key economic data, including GDP numbers for the December quarter, for further direction. Analysts expect volatility to persist in the near term, but the underlying trend remains positive supported by strong domestic inflows and corporate earnings.
