Benchmark indices on Monday logged their best five-day rally since February 2021 amid mixed performance by Asian peers.
Starting the week on a positive note, the Sensex jumped 855.30 points (1.09%) to close at 79,408.50, marking its highest closing since January 3. The Nifty rose 273.90 points (1.15%) to end at 24,125.55, as sustained buying by foreign portfolio investors (FPIs) bolstered investor sentiment.
In the past five trading sessions, the Sensex has gained 5,561.25 points (7.53%) and the Nifty 1,726.40 points (7.71%).
The total market capitalisation of BSE-listed companies has climbed back above the $5-trillion mark, after a gap of three months — the last time it was above this level was on January 10.
“The Nifty has finally broken past the key hurdle at 23,800 decisively after two months of broad consolidation, indicating a potential move towards 24,250 initially, and then gradually higher towards 24,600,” said Ajit Mishra, senior vice president (SVP), research, Religare Broking.
According to Siddarth Bhamre, head of institutional research at Asit C Mehta Financial Services, the reason behind the IT stock rally was Infosys guidance that gave confidence to investors that things may not be that dire for the sector. However, he cautions that the worst is not over yet, given the falling dollar index and gold hitting new highs.
Strategists Saion Mukherjee and Amlan Jyoti Das of Nomura forecast increased FPI inflows into Indian equities, citing the market’s relatively limited impact from the ongoing global trade war. In the past four trading sessions, FPIs have net bought shares worth $2 billion (Rs 17,112 crore), including Monday’s $231.4 million (Rs 1,970.17 crore).
“The sharp rally has propelled India back into the elite $5-trillion market capitalisation club, fuelled by gains in both blue-chip and mid-cap stocks,” said Rajesh Palviya, SVP, technical and derivatives research, Axis Securities.
On Monday alone, investors’ wealth soared by Rs 6.25 lakh crore, and over the past five sessions, it has increased by Rs 32 lakh crore. The overall market breadth was positive, with 2,918 gainers compared to 1,168 losers on the BSE.
Outperforming the benchmarks, BSE Midcap and BSE Smallcap indices rose 2.20% and 1.67%, respectively, on Monday and surged 8.49% and 9.67%, respectively, over the last five sessions.
Barring FMCG, all sectoral indices on the BSE and the NSE traded in the green. Oil & gas, power, IT, realty, and auto were the top sectoral performers, gaining up to 2.61%.
The Bank Nifty Index rose 1.87%, hitting a new closing record high of 55,304.50, surpassing its previous closing high of 54,375.35 on September 26, 2024, following strong Q4 earnings from HDFC Bank and ICICI Bank reported over the weekend. Both banks’ shares hit new all-time highs on Monday.
The top Sensex gainers included Tech Mahindra, IndusInd Bank, Power Grid, Bajaj Finserv, and M&M, rising up to 4.91%.
Among Asian equity markets, Japan, Taiwan, and Thailand ended lower by up to 1.49%, while China, South Korea, and Singapore posted gains of up to 1.05%. The Hong Kong market was shut for a holiday.