NEW DELHI: Domestic equity market snapped a five-day losing streak on Monday with the benchmarks- BSE Sensex and NSE Nifty50 – surging over 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, 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 advanced with the Nifty Midcap 100 index gaining 0.83%, after crashing 6% last week. Market capitalisation 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 doesn’t 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. “Sensex rose above 80,000 on Monday after a five-day fall as oversold conditions, lack of 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 supported India’s rally on Monday. Jasani added sustenance of this up move over 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 participants should not read much into a single-day rebound and await a decisive close above 24,500 to signal recovery, as a failure to do so could lead to a resumption of 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.”