On Monday, Indian stock markets celebrated their most impressive five-day surge since February 2021, driven by a mix of domestic and international investor enthusiasm. The Sensex soared by 855.30 points, closing at 79,408.50, its highest level since January 3. Meanwhile, the Nifty climbed 273.90 points to finish at 24,125.55, thanks to robust buying from foreign portfolio investors (FPIs).
Significant Gains Over the Week
In a remarkable week of trading, the Sensex accumulated a staggering 5,561.25 points, reflecting a 7.53% increase. The Nifty also performed well, rising 1,726.40 points or 7.71%. Such gains highlight a strong rebound in market sentiment, with the overall market capitalization of BSE-listed firms surpassing the $5 trillion mark for the first time in three months.
- Key Market Metrics:
- Sensex: +855.30 points (1.09%)
- Nifty: +273.90 points (1.15%)
- Total Market Cap: Above $5 trillion
Market Insights
Ajit Mishra, SVP of research at Religare Broking, noted, “The Nifty has decisively overcome the significant resistance at 23,800, suggesting a potential rally towards 24,250 and eventually 24,600.” The positive guidance from Infosys has instilled confidence among investors regarding the IT sector’s resilience, according to Siddarth Bhamre, head of institutional research at Asit C Mehta Financial Services. However, he warns that challenges remain, particularly with the declining dollar index and rising gold prices.
Foreign Investments Surge
Market strategists Saion Mukherjee and Amlan Jyoti Das from Nomura predict a rise in FPI investments in Indian equities, emphasizing the country’s relative immunity to the ongoing global trade tensions. Over the past four sessions, FPIs have invested nearly $2 billion (approximately Rs 17,112 crore), including a solid $231.4 million on Monday alone.
- Recent FPI Activity:
- Total net purchases: $2 billion in the last four sessions
- Monday’s purchase: $231.4 million (Rs 1,970.17 crore)
Investor Wealth Sees Remarkable Growth
On Monday, the wealth of Indian investors surged by an astonishing Rs 6.25 lakh crore, bringing the total increase over the past week to Rs 32 lakh crore. The overall market showed a positive trend, with 2,918 gainers against 1,168 losers on the BSE.
Sector Performance Highlights
All sectoral indices, except for FMCG, witnessed gains, with notable performances in the oil and gas, power, IT, realty, and automotive sectors, showcasing increases of up to 2.61%. The BSE Midcap and BSE Smallcap indices outperformed the benchmarks, gaining 2.20% and 1.67%, respectively, over the past week.
Bank Stocks Hit New Highs
The Bank Nifty Index also experienced a robust rise, climbing 1.87% to achieve a record closing of 55,304.50. This surpassed its previous high of 54,375.35 set on September 26, 2024, fueled by strong quarterly earnings reports from HDFC Bank and ICICI Bank, both of which reached all-time highs.
Conclusion
As Asian markets displayed mixed results—with Japan, Taiwan, and Thailand dipping while China, South Korea, and Singapore reported gains—the Indian market remains a beacon of strength. Investors are eager to see if this momentum will continue, particularly with sectors like IT showing signs of recovery.
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