MUMBAI: Equity benchmark indices Sensex and Nifty rebounded sharply on Monday, snapping a five-day losing streak, as value buying at lower levels and a supportive trend in global markets lifted investor sentiment.
Bargain hunting in blue-chip stocks like ITC, HDFC Bank, and Reliance Industries also fueled the rally, traders said.
The 30-share BSE Sensex surged 498.58 points or 0.64 per cent to close at 78,540.17. Intraday, it soared 876.53 points or 1.12 per cent to touch 78,918.12. The NSE Nifty gained 165.95 points or 0.70 per cent to settle at 23,753.45.
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. However, the short-term outlook remains sideways due to the festive season and holidays,” said Vinod Nair, Head of Research, Geojit Financial Services.
Among the top gainers in the 30-stock Sensex pack were ITC, Tech Mahindra, HDFC Bank, Reliance Industries, IndusInd Bank, Titan, State Bank of India, and ICICI Bank. Meanwhile, Zomato, Maruti, Nestle, HCL Tech, Bajaj Finserv, and Tata Motors were among the laggards.
The BSE midcap index climbed 0.10 per cent, while the smallcap gauge dipped 0.60 per cent. Sectorally, realty rose 1.39 per cent, followed by gains in bankex (1 per cent), metal (0.84 per cent), oil & gas (0.83 per cent), FMCG (0.75 per cent), energy (0.67 per cent), and services (0.64 per cent). Conversely, consumer discretionary, industrials, telecom, and auto indices saw declines.
US inflation data
“Indian equity markets rebounded on Monday, snapping a five-day losing streak. Gains were led by financial and IT stocks, with HDFC Bank advancing nearly 2 per cent. Softer US inflation data also buoyed regional markets. Investors are now looking forward to the Reserve Bank of India’s monetary policy and the Union Budget 2025, hoping for measures that will support economic growth and market stability. However, trading volumes are expected to remain thin due to the holiday-shortened week,” said Vikram Kasat, Head – Advisory, PL Capital – Prabhudas Lilladher.
In Asian markets, Seoul, Tokyo, and Hong Kong ended higher, while Shanghai closed lower. European markets traded mostly lower, while Wall Street finished higher on Friday.
Over the past five sessions, the Sensex had plunged 4,091.53 points or 4.98 per cent, and the Nifty had lost 1,180.8 points or 4.76 per cent. On Friday, the BSE Sensex dropped 1,176.46 points or 1.49 per cent to close at 78,041.59, while the Nifty declined 364.20 points or 1.52 per cent to 23,587.50.
Foreign Institutional Investors (FIIs) sold equities worth Rs3597.82 crore on Friday, as per exchange data.
Global oil benchmark Brent crude rose 0.44 per cent to $73.26 per barrel.
