The Indian stock market kicked off the week with a strong performance, as both the Sensex and Nifty saw significant gains, rising over 1.3%. Auto stocks were the star performers, with Nifty Auto soaring an impressive 4%. This rally comes as a welcome boost for investors who have been navigating a volatile market recently.
The BSE Sensex surged by 1,056 points, closing at 81,654, while the Nifty 50 jumped 354 points to settle at 24,985. The bullish trend wasn’t limited to auto stocks alone. Nifty Bank advanced by 695 points, Nifty Metal gained 1.22%, and FMCG and private bank indices also posted healthy gains of 1.36% and 1.62%, respectively.
Hero Motocorp led the charge among Nifty stocks, climbing 7.18%. Maruti Suzuki, Bajaj Finance, Bajaj Auto, and M&M also contributed to the upward momentum. On the flip side, HCL Tech, Larsen, Dr Reddys Labs, ONGC, and TCS were among the laggards.
Market experts weighed in on the movement. Anand James, Chief Market Strategist at Geojit Investments, noted that while Nifty’s bullish confirmation was stalled last week, the broader market showed signs of reversal. He pointed out that 43% of mid-cap and 39% of small-cap stocks ended above their 10-day SMAs, the highest since late July.
Amruta Shinde from Choice Broking added that a decisive move above 24,750 could push Nifty toward 24,900 and even 25,000. She highlighted immediate support levels at 24,600 and 24,500, which she described as attractive zones for fresh long positions.
Global markets also played a role in shaping sentiment. Asia-Pacific markets mostly rose, with China’s Shanghai index up 1.19%, Japan’s Nikkei gaining 0.87%, and Hong Kong’s Hang Seng increasing by 0.36%. South Korea’s Kospi, however, bucked the trend with a 1.29% decline.
The US markets had a mixed session on Friday, with the Dow Jones edging up 0.08% while the Nasdaq and S&P 500 slipped slightly. Factors like the unresolved US-Russia summit outcome and pending rescheduling of US trade representatives’ visit to India added layers of complexity to market dynamics.
On the institutional front, foreign investors remained net sellers, offloading equities worth Rs 1,926 crore, while domestic institutional investors stepped in as buyers, purchasing Rs 3,895 crore worth of stocks. This divergence highlights the differing strategies at play in the market.
With auto stocks leading the charge and broader indices showing resilience, the rally suggests a cautiously optimistic tone among investors. Whether this momentum holds will depend on global cues, domestic economic data, and institutional flows in the coming sessions.