Markets maintained their upward momentum at midday on Monday, with the Sensex rising 414.77 points or 0.52 per cent to 80,224.42 and the Nifty 50 gaining 137.65 points or 0.56 per cent to 24,564.50 as of 12.50 PM. The indices built on strong opening gains driven by better-than-expected GDP growth data that overshadowed concerns over new US trade tariffs.
The market breadth remained mixed with 2,667 stocks advancing against 1,360 declines on the BSE. However, 105 stocks hit 52-week highs while 90 touched 52-week lows. Circuit breakers were triggered for 246 stocks on the upper side and 171 on the lower side, indicating heightened volatility across individual counters.
Auto stocks emerged as the standout performers at midday. Bajaj Auto surged 3.53 per cent to ₹8,936.50, while Mahindra & Mahindra gained 3.05 per cent to ₹3,297.20. Tata Motors advanced 2.34 per cent to ₹684.65, contributing significantly to the benchmark gains. Consumer discretionary stock Trent climbed 2.65 per cent to ₹5,438.50, and Eicher Motors (Eternal) rose 2.10 per cent to ₹320.55.
Pharmaceutical and consumer goods stocks weighed on the indices. Sun Pharma declined 2.16 per cent to 1,560.00, emerging as the top loser. ITC fell 1.15 per cent to ₹405.05, while Larsen & Toubro dropped 0.36 per cent to ₹3,588.20. Hindustan Unilever shed 0.27 per cent to $2,652.60, and Tata Consumer Products eased 0.11 per cent to ₹1,064.20.
Sectoral indices showed mixed performance with Nifty Next 50 gaining 1.03 per cent to 66,424.95 and Nifty Midcap 100 rising 1.51 per cent to 56,569.85. Financial services indices posted modest gains with Nifty Financial Services up 0.47 per cent to 25,688.50 and Nifty Bank advancing 0.40 per cent to 53,876.15.
India’s GDP growth of 7.8 per cent in the first quarter, the highest in five quarters, continued to support market sentiment despite analyst warnings about technical fragility. Manufacturing PMI data hitting a three-year high further reinforced economic strength signals.
However, market participants remained cautious about sustainability of the rally amid persistent foreign institutional investor selling and new 50 per cent tariffs imposed by the US on Indian goods. Gold and silver continued their record-breaking run on domestic exchanges, with safe-haven buying intensifying due to geopolitical tensions and expectations of US Federal Reserve rate cuts in September.
Analysts highlighted the disconnect between strong economic fundamentals and asset price weakness, suggesting markets are pricing in potential tariff impacts on future growth. The Nifty’s position below key moving averages continues to signal technical vulnerability despite the current gains.