Markets: Sensex, Nifty surge more than 1.3% on positive global clues
Virendra Pandit
New Delhi: Amid the looming Trump tariffs potentially kicking off next week, the US Federal Reserve retaining interest rates, and the inflow of the FIIs, Indian indices on Monday reflected investors’ positive sentiments and continued their upward journey as Sensex surged past the psychological 78,000-mark while banking stocks led the rally.
Benchmark indices extended their winning streak for the sixth consecutive session on Monday, with the Sensex breaching the 78,000-mark intraday as banking and financial stocks led broad-based buying.
The 30-share BSE Sensex closed at 77,984.38, up 1,078.87 points or 1.40 per cent from its previous close, while the NSE Nifty settled at 23,658.35, gaining 307.95 points or 1.32 percent.
Banking stocks played a pivotal role in extending market gains, with the Nifty Bank index climbing 1,111.40 points or 2.20 percent to close at 51,704.95. The Nifty Financial Services index posted strong gains, rising 489.60 points or 1.99 percent to end at 25,057.55.
The Indian currency also extended winning streak for the ninth consecutive day, wiping out the 2025 losses on dollar inflows. It peaked upto 85.50 before closing at 85.6350 against the US dollar, marking a 0.4 percent gain for the day. The rupee appreciated by 33 paise to close at 85.64 against the US dollar—its highest level since January 1, 2025.
Market breadth remained positive for the fifth consecutive session, with 2,496 stocks advancing against 1,640 declines on the BSE. During the session, 92 stocks hit their 52-week highs, while 102 touched their 52-week lows.
Foreign institutional investors (FIIs) continued to be net buyers in Indian equities, with a net inflow of Rs.7,470 crore on Friday last week, boosting market confidence.
The broader market also performed in line with the benchmark indices. The Nifty Midcap 100 index rose by 1.30 percent to 52,524.05, while the Nifty Smallcap 100 index gained 1.10 percent. All sectoral indices ended in the green, with PSU banks, private banks, realty, and oil & gas being the major gainers.
Last week, the BSE Sensex surged 4.16 percent and Nifty50 gained 4.25 percent, logging their biggest one-week rally in four years. Analysts believe the improving macros of the Indian economy, fair valuations of the stock markets, and the FIIs turning net buyers are the key reasons behind the reversal of trend in the Indian market.
Fair valuations, the FIIs’ return, and the stable Indian rupee contributed most to Monday’s rally.
