After a shaky start last week fueled by escalating tensions between India and Pakistan, along with profit-taking activities, the stock market made a remarkable recovery on Monday. A surge in shares of Reliance Industries (RIL) and banking stocks played a pivotal role in this rebound, lifting investor sentiment significantly.
Significant Market Upsurge
The Sensex experienced a notable gain of 1,005.84 points, or 1.27%, closing at 80,218.37. This rebound effectively offset a 1.13% dip observed in the previous two trading sessions. Meanwhile, the Nifty index climbed by 289.15 points, or 1.20%, finishing at 24,328.50. Impressively, these benchmark indices emerged as top performers across the Asian markets.
Positive Market Sentiment
Ajit Mishra, Senior Vice President of Research at Religare Broking, remarked, “The markets kicked off the week on a robust note, spurred by favorable conditions. The lack of significant geopolitical developments over the weekend and stability in global markets alleviated some pressure, leading to an optimistic start.”
Foreign Investment Boost
According to Vinod Nair, Head of Research at Geojit Financial Services, the continuous buying spree by foreign portfolio investors (FPIs) and strong earnings from RIL enhanced investor confidence. He pointed out that a weakening U.S. dollar and inflationary trends in the U.S. might attract more FPIs to the Indian market. However, Nair cautioned investors to remain vigilant in the near term, as the market has not yet fully accounted for potential retaliatory actions following the Pahalgam terror attack.
- Foreign Portfolio Investors (FPIs):
- Net buyers for two consecutive sessions.
- Acquired shares worth Rs 2,474.10 crore.
- Domestic Institutional Investors (DIIs):
- Contributed with net purchases of Rs 2,817.64 crore.
Sustained Buying Trends
Over the last nine sessions, FPIs have consistently been net buyers, amassing shares valued at $4.2 billion (approximately Rs 35,764 crore).
Reliance Industries Leads the Way
Shares of Reliance Industries soared by 5.27%, marking its most substantial single-day increase in ten months, reaching a six-month peak of Rs 1,368.50 thanks to robust earnings for the January-March quarter. RIL was the standout performer among the Nifty stocks, contributing nearly 400 points—around 40% of the Sensex’s total increase. The company’s market capitalization jumped by Rs 92,629 crore, elevating it to Rs 18.52 lakh crore.
Banking Sector Contributions
In addition to Reliance, major banks such as ICICI Bank, Axis Bank, SBI, and HDFC Bank collectively added approximately 335 points, representing about one-third of the total Sensex gains.
Broader Market Trends
Among other indices, the BSE Midcap index outperformed with a 1.34% increase, while the BSE Smallcap index lagged, rising only 0.39%. The market breadth remained neutral, with 1,958 stocks advancing against 2,038 decliners on the BSE.
Investor Wealth Recovery
The total wealth of investors surged by Rs 4.53 lakh crore, bringing it to Rs 426.12 lakh crore (around $5 trillion), effectively recovering more than half of Friday’s losses.
Sector Performance Overview
All sectoral indices on the BSE and NSE concluded the day positively, with the exception of Information Technology (IT). Key sectors such as energy, oil & gas, capital goods, automotive, PSU banks, and healthcare led the charge, with gains of up to 3.02%.
This dynamic shift in market performance underscores the resilience of investors and the pivotal role of key sectors in shaping market trends.
