Market Rebounds After Three-Day Decline
Indian equity markets opened the week on a positive note, breaking a three-day losing streak on Monday. The rally was primarily fueled by strong performances from key heavyweight stocks and an optimistic global market environment.
The benchmark Sensex advanced by 319 points, or 0.38%, to close at 83,535.35. Similarly, the Nifty 50 index rose by 82 points, or 0.32%, settling at 25,574.35. The trading session began on a firm footing, with the Nifty building on its early momentum, although a last-hour pullback trimmed some of the day's gains.
Key Drivers and Sectoral Performance
The market's upward movement was supported by a broad-based recovery. Infosys and Reliance Industries were among the major contributors to the index gains. Sector-wise, a notable rebound was seen in the IT and pharmaceutical sectors. Strength in metal and energy stocks further fueled the positive trend.
In contrast, the realty and FMCG sectors ended the day slightly lower. The broader market indices showed a mixed performance. The BSE Midcap index outperformed, registering a gain of 0.62%, while the BSE Smallcap index experienced a slight dip of 0.28%.
According to Ajit Mishra, SVP of Research at Religare Broking Ltd., the improved sentiment was driven by progress in averting a U.S. government shutdown. Additionally, Foreign Institutional Investors (FIIs) turning net buyers after six consecutive sessions of selling provided a significant boost. A further fillip came from global brokerage Goldman Sachs upgrading India's rating to 'Overweight' from 'Neutral'.
Stocks in Focus and Corporate Updates
Several individual stocks are poised to be in the spotlight following significant developments. A host of companies, including Bajaj Finserv, Rail Vikas Nigam, BSE, Bharat Forge, and Tata Power, are scheduled to announce their second-quarter results today.
In major corporate news, Vodafone Idea reported a narrowed consolidated net loss of ₹5,524 crore for the September quarter, compared to a loss of ₹7,176 crore in the same period last year. Britannia Industries announced the resignation of Varun Berry from his roles as Executive Vice-Chairman, Managing Director, and CEO.
Bajaj Finance posted a 22% YoY increase in its consolidated net profit for Q2, which stood at ₹4,875 crore. Defence PSU Bharat Electronics secured additional orders worth ₹792 crore. In a significant corporate restructuring, Tata Motors' commercial vehicles division is set to debut on the stock exchanges today following its demerger.
Other notable updates include Bazaar Style Retail returning to profitability, Hero MotoCorp's electric arm VIDA expanding its lineup, JK Tyre planning a ₹5,000 crore investment for capacity expansion, and HUDCO reporting a modest profit increase.
