The domestic market closed higher on Monday, extending the year-end rally for the second consecutive trading session amid strong liquidity conditions and supportive global cues, as expectations of further US Fed easing in 2026 continued to bolster risk sentiment.
FIIs turning net buyers reinforced the positive momentum, IT and metal stocks leading the gains, while investors now await the Q3 GDP estimate for clearer policy direction, said Vinod Nair, Head of Research, Geojit Investments, adding that caution persists due to geopolitical uncertainties, trade negotiation delays, and crude price volatility.
Gold hit a record high, driven by rate-cut expectations, robust central bank buying, sustained ETF inflows, and heightened global tensions, including Ukraine’s strike on a Russian vessel, Nair added.
BSE Sensex ended 638.12 points or 0.75 per cent higher at 85,567.48 (hitting an intraday high of 85,601.33), and Nifty 50 zoomed by 206 points or 0.79 per cent to 26,172.40 (near the day’s high of 26,180.70).
Volatility edged higher, with India VIX rising by 9.6 percent, reflecting a pickup in caution even as markets advanced.
The NSE cash market turnover rose 5 per cent higher than the 10-day average, reflecting increased participation. Nandish Shah – Deputy Vice President, HDFC Securities, said.
Nifty will likely extend its northward journey in the next couple of trading sessions, according to Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Bank Nifty ended on a positive note. However, it has underperformed the frontline indices.
The broader market extended its outperformance, with the Nifty midcap 100 advancing 0.84 per cent and Nifty smallcap index rising 1.17 per cent.
All sectoral indices ended in positive territory, except consumer durables. Defence index outperformed, rallying over 3 per cent. The IT index also soared over 2 per cent, ending in green for the fourth straight session. Nifty Chemicals and Nifty Metal indices also gained, reflecting broad-based strength.
According to Gaurav Garg, Research Analyst Lemonn Markets Desk, the near-term outlook is constructive, with year-end momentum likely to hinge on currency moves, FII flows and global central bank signals.
On the macro front, investors will track the UK Q3 GDP data due later today, followed by US Q3 GDP and Consumer Confidence data tomorrow, Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
Top gainers & losers of Nifty 50
Trent, Shriram Finance, Wipro, Infosys and Bharti Airtel led the gainers of Nifty 50, while Tata Consumer Products, State Bank of India, Kotak Mahindra Bank, Cipla and Grasim Industries dipped the most.
Defence stocks Cochin Shipyard, Solar Industries, GRSE, Mazagon Dock, MTAR Tech and BEML zoomed 5-8 per cent.
Under the IT index, Persistent Systems, Wipro, Infosys, Tech Mahindra and HCL Technology led the gainers with 1-3 per cent increase. According to market experts, optimism around potential further rate cuts by the US Fed Reserve and a sharp rise in
Market breadth remained positive, with 2,794 stocks advancing against 1,515 declines, while 192 stocks ended unchanged out of a total 4,501 stocks traded on the BSE.
The session saw 143 stocks touching their 52-week highs, slightly ahead of the 129 stocks that hit 52-week lows. In addition, 9 stocks scaled to their upper circuit, while 6 stocks slipped into the lower circuit.
Cochin Shipyard, Jupiter Wagons rally, RPower major laggard
Under the midcap segment, Cochin Shipyard rallied 8 per cent, National Aluminium, RVNL, Bharat Dynamics and UPL soared 4 per cent. On the other hand, Dixon Tech, Swiggy, Tube Investments and Tata Communications declined 1.5-3 per cent.
Among smallcap basket, Jupiter Wagons rallied 20 per cent. GRSE, Devyani International, Poonawalla Fincorp and MCX surged 5-6 per cent, while Reliance Power shed up to 9 per cent. Aegis Vopak, Five-Star Business, Neuland Lab and CGCL declined up to 2 per cent.
Global markets
Asian markets settled in positive territory. European markets were trading on a mixed note.
US markets ended higher on Friday. Sensex closed 447.55 points or 0.53 per cent higher at 84,929.36 on Friday and Nifty 50 increased by 150.85 points or 0.58 per cent to 25,966.40.
FIIs bought equities worth ₹1,830.89 crore on Friday, exchange data show. DIIs bought equities worth ₹5,722.89 crore in the previous trade.