Sensex ends 472 points higher, Nifty crosses 22,500; FMCG, energy and banking stocks lead
Indian equity markets rebounded on Monday as FMCG, energy, and banking stocks drove the Sensex up by 472 points and Nifty past the 22,500 level.
Sensex Nifty rally Monday saw Indian equity markets stage a robust recovery on Monday, breaking away from a recent corrective trend. The benchmark indices ended significantly higher, fueled by strong performance in the FMCG, energy, and banking sectors.
The Sensex surged by 472.77 points, or 0.66 per cent, to settle at 72,382.47. Meanwhile, the Nifty reclaimed a crucial psychological milestone, climbing 133.80 points or 0.60 per cent to finish at 22,555.75. This upward movement provided much-needed relief to investors after a period of market volatility.
Sectoral Winners and Losers
The recovery was not uniform across all sectors, but several key industries provided the necessary momentum to push the indices higher. The FMCG sector emerged as the standout performer, leading the charge with a 1.67 per cent gain. Other sectors that contributed to the positive sentiment included telecom, consumer durables, and financial services.
On the losing side, the healthcare sector faced headwinds, emerging as the top laggard. While the broader market indices ended in the green, the performance of specific stocks varied widely:
- Top Gainers (BSE): ITC, Eternal, Bajaj Finance, ICICI Bank, Adani Ports, Reliance, Bharti Airtel, TCS, LT, Titan, NTPC, Maruti, Axis Bank, and Power Grid.
- Top Gainers (NSE): ITC, BSE, TMPV, Bajaj Finance, Adani Ports, NTPC, Eternal, Reliance, ICICI Bank, Bharti Airtel, TCS, ONGC, Power Grid, Axis Bank, SBIN, and Bajaj Finserve.
- Major Laggards (BSE): HCL Tech, Asian Paint, HDFC Bank, Sun Pharma, Infosys, BEL, and Tech Mahindra.
- Major Laggards (NSE): HCL Tech, Max Health, Cipla, Sun Pharma, Infosys, Apollo Hospital, Asian Paint, Kotak Bank, Tata Steel, and JSW Steel.
Global Cues and Economic Drivers
Market analysts pointed toward several global factors that helped soothe investor nerves. A softening in Brent crude prices, which hovered around USD 102 per barrel, provided relief regarding inflation concerns. Additionally, weaker-than-expected US jobs data helped lower the immediate fears of aggressive monetary tightening by the US Federal Reserve, thereby boosting risk appetite in emerging markets like India.
Ajit Mishra, Senior Vice President of Research at Religare Broking Limited, noted that the market took a breather from its recent corrective phase. He highlighted that the strength in FMCG, energy, and banking was supported by positive quarterly business updates from select companies. He also observed that while Pharma and IT sectors lagged after recent outperformance, midcap and small-cap indices also participated in the rally, gaining nearly half a percent each.
Technical Outlook and Challenges Ahead
Despite the encouraging rebound, experts urge caution. While the Nifty has shown signs of recovery after testing support zones between 22,400 and 22,600, technical hurdles remain. The 22,650–22,800 zone is expected to act as immediate resistance, with the 23,000–23,200 range serving as a subsequent target.
Several headwinds continue to loom over the Indian markets, including:
- Elevated US Treasury Yields: High yields in the US continue to impact global capital flows.
- Foreign Institutional Investor (FII) Selling: Persistent selling by foreign investors remains a significant overhang.
- Currency Volatility: The Indian rupee continues to face pressure, hovering above the Rs 96 per dollar mark.
Vinit Bolinjkar, Head of Research at Ventura, emphasized that after a prolonged period of decline, volatility is expected to persist. He suggested that the market's direction will hinge on the Reserve Bank of India's (RBI) upcoming stance on interest rates, crude oil fluctuations, and the evolving tone of global bond yields.