MUMBAI: India’s equity market snapped a five-day losing streak on Monday with the benchmarks- BSE Sensex and NSE Nifty50 – surging more than 1% each in intraday deals on the back of favourable global cues. At close, the Sensex was up 602 points at 80,005, marking a 0.76% gain, while the Nifty surged by 158 points, ending at 24,339, a gain of 0.65%.
The fresh gain came after the benchmarks fell over 2% each last week. The broader market also advanced with the Nifty Midcap 100 index gaining 0.83%, after crashing 6% last week. The market capitalization of all listed firms on the BSE surged by Rs 4.56 lakh crore to Rs 441.54 lakh crore.
Experts advised investors to remain alert as Monday’s gain does not suggest a reversal from the month-long weakness. Foreign portfolio investors (FPIs) continued with their selling spree, offloading shares worth Rs 3,228 crore (on a net basis) on Monday, as per NSE data.
“BSE Sensex climbed back above the 80,000, mark on Monday after a five-day weakness as oversold conditions, lack of aggressive FPI selling, sense of relief post Israel’s retaliatory strike against Iran - all led to an improvement in sentiments,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
A dip in global oil prices and a rally in other global markets also supported India’s rally on Monday. Jasani added sustenance of this up move over the next few days will be crucial to lead to the return of buying interest from all classes of investors.
Ajit Mishra, SVP of Research at Religare Broking said that participants should not read much into a single-day rebound and await a decisive close above 24,500 to signal further recovery, as a failure to do so could lead to a resumption of the decline.
He added, “Traders are advised to maintain a cautious approach, keeping positions balanced on both sides, with a focus on large-cap and mid-cap leaders while avoiding averaging down loss-making positions.”
Much of Monday’s gain came from financial, metal, and realty stocks. Private lender ICICI Bank was among the top performers in the Sensex and Nifty indices, surging more than 3% after it reported a 14.5% jump in quarterly profit to Rs 11,746 crore. Mahindra & Mahindra, Infosys and SBI were other top gainers on Monday.