After a week of losses, Indian equity markets closed on a positive note on Monday, buoyed by strong global cues. The domestic benchmark indices, Sensex and Nifty, rebounded after witnessing a near 5% decline over the past five consecutive trading sessions.
Realty and PSU bank stocks led the rally in the Nifty, driving the market upwards.
At the close, the Sensex settled at 78,540.17, marking a gain of 498.58 points or 0.64%, while the Nifty ended at 23,753.45, up 165.95 points or 0.70%.
The Nifty Bank index climbed 558.40 points, or 1.10%, to close at 51,317.60. The Nifty Midcap 100 index rose by 186.15 points or 0.33%, ending at 57,092.90. However, the Nifty Smallcap 100 index declined slightly, losing 26.50 points or 0.14% to close at 18,687.80.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that short-term market recoveries may continue but could face renewed pressure from Foreign Institutional Investor (FII) selling.
“In the short run, there will be market rebounds, which may be followed by renewed FII selling. A sustained rally is possible only when we see clear signs of economic growth revival, likely in early 2025,” he said.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the optimism to improved global data and positive sentiment in interest rate-sensitive sectors.
“The lower-than-expected US PCE (Personal Consumption Expenditures) data boosted investor confidence, particularly in metals, which benefited from expectations of higher steel import taxes. However, the short-term outlook remains sideways due to a lack of fresh catalysts and the impact of the festive season,” he said.
On the Bombay Stock Exchange (BSE), 1,640 shares advanced, while 2,445 declined, and 133 remained unchanged.
Sectorally, most indices ended in green, with realty and PSU banks gaining the most. However, Auto, Media, and Healthcare sectors recorded minor losses.
In the Sensex pack, top gainers included ITC, Tech Mahindra, HDFC Bank, IndusInd Bank, Titan, SBI, ICICI Bank, Adani Ports, Tata Steel, and Bharti Airtel. On the other hand, Zomato, Maruti, Nestle India, HCL Tech, and Bajaj Finserv were among the top losers.
Foreign Institutional Investors (FIIs) sold equities worth ₹3,597.82 crore on December 20, while Domestic Institutional Investors (DIIs) purchased equities worth ₹1,374.37 crore on the same day.
Earlier in the session, the Indian stock market jumped over 600 points amid mixed but largely positive global cues, signaling renewed optimism among investors.
(with inputs from agencies)
