Indian equity benchmarks ended Monday’s session with strong gains as buying in IT, banking and financial stocks lifted investor sentiment. A broad-based rally across large-cap shares, improved risk appetite and strong participation from investors helped the market close near the day’s highs.
The BSE Sensex rose 544.39 points, or 0.70 percent, to settle at 78,639.03. The NSE Nifty 50 gained 390.70 points, or 1.60 percent, to close at 24,774.30. The index touched an intraday high of 24,774.30, indicating sustained buying momentum during the session.
IT stocks lead gains as investors return to technology shares
Stocks belonging to the information technology sector became the principal market catalyst on Monday. The BSE Focused IT index recorded an increase of 2.49%, while there was significant buying seen in large IT stocks.
Among the Nifty 50 stocks, TCS recorded a rise of 4.57%, Infosys rose by 4.42%, HCL Technologies gained 2.23% and Wipro recorded a gain of 2.73%. This highlighted the resurgence of interest of investors in technology large caps.
The outlook for IT sector spending continued to be watched by market participants.
Banking and financial stocks add momentum
Banking and financial stocks also contributed to the market’s advance. Axis Bank was among the notable gainers, rising 3.46 percent, while ICICI Bank gained 2.57 percent. Bajaj Finserv climbed 3.30 percent and Shriram Finance advanced 4.16 percent.
Other financial heavyweights including SBI, Kotak Mahindra Bank and Jio Financial Services also closed higher, supporting broader market sentiment.
The strength in financial stocks helped sustain the rally as investors showed confidence in large private lenders and financial services companies.
Market breadth remains positive
This rally had wide participation, with most stocks trading higher at the close of trade. In the NSE market, there were 2,360 advancing stocks, 1,027 declining stocks, and 118 stocks that traded unchanged.
A total of 154 stocks closed at new 52-week highs, showing high participation in all sectors.
In the top Nifty gainers, Grasim Industries topped the charts with a gain of 5.13 percent, followed by TCS with a gain of 4.57 percent, InterGlobe Aviation (IndiGo) at 4.43 percent, Infosys at 4.42 percent and Shriram Finance, up 4.16 percent.
Auto, consumer and industrial stocks support rally
Buyers were seen in a number of sectors outside IT and banking.
While the shares of IndiGo advanced 4.43 percent and those of Bajaj Auto increased 2.91 percent, the consumer companies also saw gains as shares of Asian Paints rose 2.28 percent, ITC 2.14 percent and Hindustan Unilever 1.75 percent.
Industrials were among the gainers with shares of Larsen & Toubro advancing 2.19 percent and Grasim Industries emerging as one of the top gainers of the day.
Shares falling were those of Apollo Hospitals that fell 1.53 percent and Sun Pharma 1.36 percent. Shares of Maruti Suzuki, ONGC and Tech Mahindra were among the losers.
Positive market sentiment supports benchmark indices
There were several reasons for the upward movement of the markets. Heavy buying in large-cap stocks, optimism about technology stocks and strength in banks and consumption sectors helped raise the bar for indices.
The wider participation in the market indicated that the rally was not confined to just a few stocks in the indices. The advance/decline ratio remained positive.
The Indian rupee held steady during the day. The RBI reference rate was at ₹95.2601 against the dollar compared to ₹95.3706 in the previous day.
What investors will watch next
The participants in the market will observe the developments in the world market, foreign institutional investor actions, company news, and developments in key sectors to get more guidance.
Moreover, investors will keep an eye on how the Nifty sustains itself above 24,700 and whether the buying of IT and financial sector stocks supports any upside in the near future.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
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Prabhat Gupta is Senior Copy Editor of Business Segment. He has worked across broadcast and digital newsrooms, editing and producing stories on politics, business, regulation and current affairs. His work has included writing on global markets and regulatory developments, along with long-form editorial content on business and governance.
He holds a master’s degree in Political Science from the University of Delhi and qualified UGC-NET in the subject, bringing an academic grounding to public affairs and policy coverage.
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