Benchmark indices staged a strong recovery on Monday, with the closing above 24,600 as robust Q1 GDP data of 7.8 per cent boosted investor sentiment and snapped a three-day losing streak.
The Nifty 50 gained 198.20 points or 0.81 per cent to close at 24,625.05, while the added 554.84 points or 0.70 per cent to end at 80,364.49. The strong performance came after India’s Q1 FY26 GDP growth came in at 7.8 per cent, marking the highest growth in five quarters and significantly surpassing the consensus estimate of 6.8 per cent.
“Indian markets stayed strong today with Nifty 50 crossing 24,600, supported by robust GDP data that lifted overall sentiment,” said Pranay Aggarwal, Director and CEO of Stoxkart. “Optimism also came from PM Modi’s participation at the SCO Summit in Tianjin, where meetings with Xi Jinping and Putin signalled the easing of India-China tensions, boosting confidence among investors.”
Auto stocks emerged as the clear winners, with leading the charge with a 4.01 per cent gain to ₹8,978, followed by up 3.52 per cent to ₹3,312. added 3.18 per cent to ₹5,250, while gained 3.10 per cent to ₹6,292 and rose 3.09 per cent to ₹689.70.
On the losing side, declined 1.91 per cent to ₹1,564, while fell 1.03 per cent to ₹405.55. dropped 0.56 per cent to ₹2,645, slipped 0.30 per cent to ₹3,618, and edged down 0.22 per cent to ₹1,585.90.
The broader markets significantly outperformed the frontline indices, with the Nifty Midcap 100 surging 1.97 per cent and the Nifty Next 50 jumping 1.41 per cent. Market breadth remained firmly positive with 2,795 advances against 1,391 declines on the BSE, while 129 stocks hit 52-week highs, compared to 113 touching 52-week lows.
“The robust data reaffirmed the resilience of the Indian economy and set a positive tone for the session,” noted Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities. “Following the strong start, the Nifty maintained its upward momentum throughout the day, eventually closing above the 24600 mark with a gain of 0.82 per cent, thereby snapping a three-day losing streak.”
Sectoral performance showed broad-based strength, with Nifty Auto leading gains at 2.75 per cent, followed by Consumer Durables up 2.1 per cent. The IT sector advanced 1.6 per cent, while Banking and Financial Services posted modest gains of 0.65 per cent and 0.69 per cent, respectively. However, Nifty Pharma and Media ended in negative territory.
“India’s Q1 GDP growth of 7.8 per cent, exceeding projections, has reinforced investor confidence in the economy’s resilience amid global uncertainties,” said Vinod Nair, Head of Research at Geojit Investments. “Expectations of GST rationalisation at the upcoming council meeting continue to bolster sentiment, supporting discretionary consumption.”
Global factors also supported the rally, with a US appeals court ruling most of Trump’s tariffs illegal, though they remain in effect until October 14. This development added trade optimism to the mix, according to market participants.
The rupee traded sideways near 88.18 against the dollar, remaining under pressure from recent US tariffs on Indian products and persistent foreign institutional investor outflows. “The recently imposed US tariffs on Indian products continue to weigh on sentiment, raising concerns over fiscal pressures and external balances,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
In commodities, gold traded firm with gains of ₹1,000 at ₹1,05,000, supported by rupee weakness and trade-related uncertainty. “The rally was further fuelled after the US Appeals Court declared Trump’s tariffs illegal, sparking a safe-haven bid,” Trivedi added.
Technical analysts remained cautiously optimistic about the near-term outlook. “The zone of 24710-24740 will act as an important hurdle for the index,” said Shah from SBI Securities. “Any sustainable move above the level of 24740 will lead to extension of the pullback rally up to the 24900 level.”
“Despite the positive momentum, the index continues to trade below its key short to medium-term moving averages — namely the 20-day, 50-day, and 100-day EMAs — indicating that a broader trend reversal is yet to be confirmed,” he cautioned.
Market participants are now eyeing the upcoming GST council meeting for further cues on consumption sector support. “The consumption sector is expected to gain traction, supported by GST rationalization and upcoming festive demand,” said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.
Looking ahead, investors will watch for follow-through strength and confirmation from momentum indicators. “Near term, the market looks bullish with banking, infra, and midcaps leading the momentum, though global trade policy and oil prices remain key risks,” concluded Aggarwal from Stoxkart.