Auto and consumer counters led the rally, while selective pharma and IT stocks lagged.
Indian equity markets witnessed a strong rally on Monday, powered by auto, cement, and consumer stocks. Optimism strengthened after Prime Minister Narendra Modi hinted at GST structure changes by Diwali this year, boosting consumption sentiment. The Nifty tested 25,000 but ended below it by market close.
On Monday, the Sensex closed 676 points higher at 81,273, while the Nifty 50 ended up 245 points at 24,876. Broader markets mirrored the sentiment, with the Nifty Midcap index rising 1% and the Smallcap index ending 1.3% higher.
And the retail investor sentiment surrounding the Nifty 50 remained ‘neutral’ by market close on Stocktwits.
Stock Moves
Sectorally, barring technology, media, and select pharmaceuticals rest of the indices ended in the green, with a 4% rally in the auto index.
Maruti and Ashok Leyland ended with 9% gains, while TVS Motor and Hero Motocorp ended 6% higher.
The other pocket that rallied on the back of the GST reform hopes is consumer stocks – PG Electroplast, Amber rose 8%, followed by 6% rally in Blue Star, Voltas, and Bata India. IFB Industries hit a 20% upper circuit.
On the other hand, stocks such as Godfrey Phillips (-5%) and Nazara Tech (-2%) ended lower on reports of a 40% ‘sin tax’.
Steel stocks such as JSW Steel, Hindalco, SAIL, and Vedanta rose over 2% after India’s trade watchdog proposed safeguard duties to protect the domestic players from the surge in cheap shipments, especially from China.
Glenmark Pharma ended over 3% lower, driven by a weak June quarter (Q1 FY26) earnings performance. And KEC International surged 7% higher on order wins.
Stock Calls
On Techno Electric, analyst Akhilesh Jat noted that its short-term technical picture suggests ₹1,655 may act as key resistance, while ₹1,350 remains a crucial support zone. A breakout above resistance could open room for further upside, while sustained weakness below support may trigger downside pressure.
Vinay Taparia sees Techno Electric stock potentially moving to ₹1,650-₹1,800 in the short term. He suggested that any correction till ₹1,400 should be used as a buying opportunity, but a close below ₹1,350 negates this view.
Markets: What Next?
Globally, European markets traded lower, while US stock futures indicate a subdued start on Wall Street. Investors will be watching for developments from the meeting between the US and Ukrainian Presidents in Washington today.
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