Sensex Jumps Over 400 Points, Nifty Crosses 22,500 as Markets Snap 8-Day Losing Streak
Indian equity markets snap an 8-day losing streak as Sensex gains over 400 points and Nifty crosses the 22,500 level.
The Indian equity markets witnessed a massive rebound on Monday, effectively breaking a grueling eight-day losing streak. Both the benchmark indices, Sensex and Nifty, opened with a significant gap-up, signaling renewed investor confidence across the trading floor.
Market Indices Surge in Early Trade
The Sensex Nifty jump was evident from the opening bell. The Sensex opened at 72,340.95 and saw upward momentum, trading around 72,362.54—an increase of 452.84 points or 0.63 per cent compared to the previous close of 71,909.70. Similarly, the Nifty crossed the psychological threshold of 22,500, opening at 22,532.40 and trading near 22,543.05, marking a gain of 121.10 points or 0.54 per cent.
The rally was widespread, with all broad market indices trading in the green. Leading the charge was the Nifty PSU Bank index, which emerged as the top sectoral performer with a surge of 1.79 per cent. Other sectors seeing significant gains included chemicals, realty, metal, financial services, and oil & gas, all of which rose by over one per cent.
Top Gainers and Losers
Investors saw significant movement in several blue-chip stocks. On the NSE, the major gainers included:
- Bajaj Finance
- Shriram Finance
- ITC
- NTPC
- Coal India
- Grasim
- Bajaj Finserv
- SBIN
- Power Grid
- ONGC
- L&T
- Axis Bank
- HDFC Bank
Conversely, some heavyweight stocks faced selling pressure. The top drags on the NSE included Apollo Hospital, Infosys, Cipla, Eternal, Asian Paints, BEL, Tech Mahindra, and Nestle. On the BSE, while stocks like Bajaj Finance, ITC, and SBIN saw gains, losers included Infosys, HCL Tech, Sun Pharma, M&M, BEL, and Maruti.
Expert Analysis: Rebound or Reversal?
Market analysts are closely watching whether this surge marks a permanent shift or a temporary relief. Market analyst Vipin Dixena suggested that the current setup appears to be a technical rebound rather than a confirmed trend reversal. He highlighted a significant "valuation reset," noting that Nifty’s forward P/E has compressed sharply toward post-Covid lows.
"The correction is now visible across large caps: 42 of the 50 Nifty constituents are below their 200-DMA, indicating that the weakness is not restricted to a handful of stocks," Dixena noted. He identified 22,200 as a crucial support level, suggesting that if Nifty stays above this, the next resistance levels to watch are 22,600 and 22,800.
Economic Tailwinds and Headwinds
Despite challenges such as elevated crude oil prices (Brent crude trading at approximately USD 101.37 per barrel) and high US bond yields, experts believe the market has a floor. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that valuations have become attractive, particularly for large-cap stocks.
He pointed to strong tailwinds, such as resilient September auto sales, as reasons for market stability. Furthermore, the market has largely discounted the potential for the RBI to raise rates by 25bp on October 7th. "Banks will benefit from the rate hike since rising floating rates will improve their margins," Vijayakumar added.