Dalal Street witnessed a rally on Monday as bulls seemed to return to the markets, pushing the Sensex up by over 800 points and lifting the Nifty past the 24,000 mark, with strong buying seen across sectors.
The S&P BSE Sensex gained 1,057.83 points to 79,611.03, while the NSE Nifty50 added 330.00 points to 24,181.65 as of 12:50 pm.
This marks the fifth straight session of gains, showing that investor confidence is returning. Both Sensex and Nifty touched their highest levels since January 6.
from major lenders, but IT stocks surged in the afternoon session. The return of foreign investors and hopes of a breakthrough in US-India trade talks added to the upbeat mood.
IT AND BANKING STOCKS LEAD THE RALLY
One of the biggest reasons for today’s rally is the strong performance of banking stocks. HDFC Bank and ICICI Bank, which have the highest weight in the Nifty50 index, rose 1.3% and 0.9%, respectively. Both touched record highs after reporting better-than-expected quarterly results. These results have lifted overall sentiment in the banking sector.
However, IT stocks also jumped, lifting the stock markets.
Tech Mahindra emerged as the standout performer on BSE Sensex, surging 6.14%, followed by IndusInd Bank which jumped 4.45%. Bajaj Finserv showed strong momentum with a gain of 4.04%, while HCL Technologies advanced 3.83%, and Axis Bank rounded out the top five gainers with a rise of 3.81%.
Nifty IT saw the biggest gain in the afternoon session, adding 3.25%. The Nifty PSU Bank index jumped 2.67%, and Nifty Private Bank rose 2.44%, making IT the top-performing sector of the day.
The gained 1.96%.
Other sectors also saw good gains. Nifty Oil & Gas went up by 2.31%, Nifty Metal by 2.18%. Financial services and automobile stocks also did well.
FOREIGN INVESTORS RETURN TO DALAL STREET
Foreign portfolio investors (FPIs) have become net buyers in Indian markets again. In the last three sessions, they have bought shares worth over USD 1 billion.
This comes after many weeks of selling. The falling US dollar and better growth outlook for India have helped bring these investors back.
Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services, said, “Several factors have come together to push Indian markets higher. Global funds were holding fewer Indian stocks compared to the past. With the recent fall in the dollar and India’s strong position, many are now looking to increase their exposure again.”
POSITIVE GLOBAL SIGNALS FOR INDIA
India is also seen as being in a good place globally, especially in the ongoing tariff talks with the US.
The US government has paused some tariffs and is now looking to talk with key partners, including India. This visit is being viewed by the market as a positive sign and adds to the confidence that India could benefit from upcoming global trade changes.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that even though global markets are uncertain, India is doing relatively well.
“India is the only large economy that can grow at 6% even when the world economy slows. With a weaker dollar and strong local growth, foreign investors are likely to stay interested. The results from ICICI Bank and HDFC Bank could take Bank Nifty to new highs,” he said.
He also added that foreign investors may now focus on domestic-driven sectors like telecom, airlines, hotels, auto, real estate, cement, and healthcare. Digital stocks may also perform well. However, IT stocks may remain under pressure due to the weak outlook for the US economy.