Starting the week on a positive note, the benchmark indices Sensex and Nifty advanced nearly 1% on Monday, extending the rebound seen on Friday, supported by positive global cues and stability in the Indian rupee against the US dollar.
The Sensex jumped 638.12 points, or 0.75%, to close at 85,567.48, while the Nifty surged 206 points, or 0.79%, to end the session at 26,172.40. In the previous session on Friday, the Sensex and Nifty had gained 0.53% and 0.58%, respectively.
What did Ajit Misra say?
“Sentiment was supported by favourable global cues and relative stability in the currency, which helped ease concerns around external pressures. A pause in aggressive foreign selling, along with rotational buying in select index heavyweights, contributed to the steady undertone,” said Ajit Mishra, SVP – Research, Religare Broking. Overall activity remained selective, as participants stayed cautious in the absence of strong domestic triggers, he added.
“The markets extended their gains for a second consecutive session, with the Nifty opening with a breakaway gap and closing above its short-term 21-DMA at 26,000. The short-term structure has turned positive once again; however, 26,200 continues to act as a key resistance level. A decisive breakout above this zone could pave the way for fresh record highs,” said Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking.
Outcome for Investors
Investors were richer by ₹9.52 lakh crore over the past two sessions, as the total market capitalisation on the BSE rose by ₹5.42 lakh crore on Friday and ₹4.10 lakh crore on Monday, taking the overall market capitalisation to ₹475.32 lakh crore.
Market breadth was firmly positive, with 2,794 gainers against 1,515 losers on the BSE.
Outperforming the benchmarks, broader markets also moved higher, indicating improved participation compared with recent sessions. The BSE Midcap index rose 0.86%, while the BSE Smallcap index advanced 1.12%.
After three consecutive sessions of buying, foreign portfolio investors sold shares worth ₹457.34 crore on Monday, while domestic institutional investors purchased shares worth ₹4,058.22 crore, as per provisional data from the BSE.
Barring consumer durables, all sectoral indices ended in the green across both the BSE and NSE. IT emerged as the top sectoral gainer with a 2% rise, followed by capital goods, industrials, metals, and commodities. Consumer durables declined marginally by 0.11%.
Among Sensex constituents, Trent Ltd, Infosys, Bharti Airtel, Tech Mahindra and Tata Motors were the top performers, gaining by up to 3.56%. On the other hand, State Bank of India, Kotak Mahindra Bank, Larsen & Toubro and Bajaj Finance were the top laggards, declining by up to 0.60%.