India’s equity market snapped a five-day losing streak on Monday with the benchmark indices - BSE Sensex and NSE Nifty - gaining about 0.70 per cent each. At close, the Sensex was up 498.58 points or 0.64 per cent at 78,540.17, and the Nifty was up 165.95 points or 0.70 per cent at 23,753.45.
The fresh surge comes after the two indices last week recorded their steepest weekly declines in over two years, plummeting nearly 5 percent each.
“The Indian market demonstrated optimism following the recent sell-off. The lower-than-expected US PCE print bolstered investor sentiment in interest rate-sensitive sectors. Broad-based buying was observed, with the metals sector notably benefiting from the anticipated increase in steel import taxes,” said Vinod Nair, Head of Research, Geojit Financial Services.
Nair added that despite the positive market sentiment, the short-term outlook is expected to remain sideways due to a lack of new catalysts and the impact of the festive season and holidays.
In the Nifty50 pack, JSW Steel, ITC, Hindalco Industries, IndusInd Bank and Trent, were the top gainers. The big laggards were Hero MotoCorp, Maruti Suzuki, Nestle India, HCL Technologies, and Bajaj Finserv.
Among sectoral indices, bank, FMCG, metal, oil & gas, energy, and realty were up 0.5-1 per cent, while the media index shed 0.4 per cent. The broader Midcap and Smallcap indices remained subdued, ending nearly flat.
“This pause is typical, driven by oversold positions in index heavyweights. Participants are advised to maintain a cautious stance with a negative bias on the index until clear signs of a rebound emerge. However, individual stocks continue to present opportunities on both sides. We reiterate our preference for the pharma and healthcare sectors for long positions, while other sectors are likely to see mixed trading trends,” said Ajit Mishra – SVP, Research, Religare Broking Ltd