NEW DELHI: India’s equity markets continued their upward momentum for the sixth consecutive session on Monday, driven by value buying after the recent correction in several stocks. The BSE Sensex surged 1,078.87 points (1.40%) to close at 77,984.38, while the NSE Nifty50 climbed 307.95 points (1.32%) to settle at 23,658.35.
The latest gains follow a strong performance last week, where both benchmark indices rallied over 4% each—marking their biggest weekly gains in years.
The rebound was supported by renewed foreign institutional investor (FII) inflows amid a strengthening rupee against the US dollar. Additionally, a dovish stance from the US Federal Reserve on potential rate cuts boosted sentiment, with markets now anticipating a rate cut by the Reserve Bank of India in its upcoming policy meeting.
Mid- and small-cap stocks also extended their winning streak, with the Nifty Midcap 100 rising 1.30% and the Nifty Smallcap 100 gaining 1.10%. Market breadth remained positive for the fifth straight session, with the BSE advance-decline ratio at 1.53.
All sectoral indices closed higher, with banking, capital goods, IT, oil & gas, power, realty, and PSU bank stocks rising between 1% and 3%. Investors' wealth grew by ₹5.05 lakh crore, as the market capitalization of BSE-listed firms reached ₹418.35 lakh crore, up from ₹413.30 lakh crore on Friday.
“The domestic market experienced a robust rally, spurred by value buying as valuations returned to long-term averages and early indications of earnings growth recovery emerged,” said Vinod Nair, Head of Research, Geojit Investments Limited.
Nair added that the sustainability of this trend will depend on upcoming PMI data, Q4 earnings results, and developments related to reciprocal US tariffs.
Prashanth Tapse, Senior VP (Research), Mehta Equities noted that short-covering ahead of this week’s monthly F&O expiry fueled the rally, with the Sensex briefly crossing the psychological 78,000 mark amid broad-based buying.
He added that renewed optimism from foreign investors, following a sharp decline in the local currency, along with strong cues from US and European markets, further bolstered sentiment. According to exchange data, FIIs net bought equities worth ₹7,470.36 crore on Friday and Rs 3,56 crore on Monday.
Moderating domestic inflation and expectations of further rate cuts have also temporarily eased concerns over global trade-related uncertainties, a key positive for markets.