Markets posted strong gains on Monday, with the surging 566.96 points or 0.67 per cent to close at 84,778.84, while the 50 advanced 170.90 points or 0.66 per cent to settle at 25,966.05, driven by optimism over progress in US-China trade negotiations and softer-than-expected US inflation data that renewed expectations of a Federal Reserve rate cut this week.
“The domestic market witnessed a broad-based recovery owing to progress in the US-China trade talks. Meanwhile, gold prices declined as demand for safe-haven assets waned. Softer-than-expected US CPI data renewed expectations of a FED rate cut this week, boosting investor confidence,” said Vinod Nair, Head of Research, Geojit Investments Limited.
Market breadth remained positive with 2,178 stocks advancing against 2,114 declining on the BSE, where 4,502 stocks were traded. As many as 193 stocks hit 52-week highs, while 95 touched 52-week lows.
Among Nifty 50 constituents, emerged as the top gainer, surging 3.22 per cent to close at ₹2,932.70, followed by which jumped 3.16 per cent to ₹1,898.00. gained 2.65 per cent to ₹2,083.00, rose 2.48 per cent to ₹926.90, and Reliance Industries climbed 2.18 per cent to ₹1,483.20.
On the losing side, led the decliners, falling 1.72 per cent to ₹2,149.40, followed by which dropped 1.60 per cent to ₹415.30. Bajaj Finance declined 0.66 per cent to ₹1,082.60, Adani Enterprises slipped 0.57 per cent to ₹2,490.00, and ONGC fell 0.53 per cent to ₹253.60.
Sectoral indices painted a largely positive picture, with PSU Banks leading the rally by surging 2.76 per cent. “Among sectors, PSU Banks index outperformed, rallied 2.76 percent, whereas despite strong market sentiment, intraday profit booking was seen in Defence and Media stocks,” noted Shrikant Chouhan, Head Equity Research, Kotak Securities.
The broader markets outperformed the benchmark indices, with Nifty Midcap 100 climbing 0.93 per cent to 59,780.15, while Nifty Bank gained 0.72 per cent to 58,114.25 and Nifty Financial Services rose 0.45 per cent to 27,519.00.
“Renewed optimism over US–China trade negotiations and growing expectations of a US Fed rate cut sparked a strong rally across global equities, helping Indian markets to close on a positive note,” said Ponmudi R, CEO of Enrich Money.
In the currency market, the rupee witnessed a decline of 0.50 per cent, closing at 88.22 against the dollar. “India faces mixed implications, with potential pressure to recalibrate its trade dynamics with the US This dual impact has kept the rupee volatile within a broad range,” said Jateen Trivedi, VP Research Analyst at LKP Securities, who expects the currency to trade between 87.70 and 88.55 in the near term.
prices extended their weakness, declining by ₹1,550 to ₹1,21,900, as “optimism over a potential US-China trade deal encouraged continued profit booking in bullions,” Trivedi added.
Looking ahead, technical analysts remain constructive on the market outlook. “The current setup looks favorable for a further rally in the index, with dips likely to be bought into. On the lower end, support is placed at 25,700, below which weakness might emerge. On the higher end, resistance is seen at 26,000; a decisive move or close above this level could trigger a rally towards 26,500 in the short term,” said Rupak De, Senior Technical Analyst at LKP Securities.