The Indian stock market bounced back strongly on Monday despite geo-political tensions, with the benchmark indices ending the day on a robust note.
The rally was driven primarily by a surge in the strong performance from select banking stocks and hopes of a new India-US trade deal.
The Sensex opened with a positive gap of about 120 points, starting at 79,344. As the day progressed, the index continued to climb, reaching a fresh high for the year at 80,322 before closing at 80,218, up by 1,006 points, or 1.27 per cent.
This marked a significant recovery for the index. Similarly, the Nifty index also saw a positive movement, swinging between 24,054 and 24,355, and settling at 24,329, up by 289 points, or 1.2 per cent.
"On the higher end, 24,360 has remained a resistance level, and the Nifty might spend some more time around the current range unless 24,360 is decisively breached,” Rupak De of LKP Securities said.
He added that above 24,360, the index could move towards 24,550, where the 61.80 per cent Fibonacci retracement level of the previous fall from 26,277 to 21,743 lies.
Major banking stocks such as ICICI Bank, HDFC Bank, Axis Bank, and SBI contributed significantly to the market's strong performance, together adding up to 340 points to the Sensex. These top four stocks made up nearly 75 per cent of the day's total gains.
Among the individual gainers, Sun Pharma, Mahindra and Mahindra, Tata Steel, SBI, Axis Bank, Tata Motors, and Larsen and Toubro all saw an increase of 2-3 per cent in their stock prices.
However, some stocks like HCL Technologies, UltraTech Cement, Hindustan Unilever, and Eternal faced losses, with HCL Technologies falling nearly 2 per cent.
In the broader market, the BSE MidCap index rose by 1.4 per cent, while the SmallCap index gained 0.4 per cent.
Sectoral indices also saw positive movement, with the BSE Oil and Gas index leading the way, climbing nearly 3 per cent.
Other sectors like banking, capital goods, auto, metal, and healthcare also ended on a strong note, with each index rising by over 1.5 per cent.
Rupee traded strong at 84.98, up by 0.25, supported by a sharp surge in capital markets, where major indices rose by 1.20 per cent and banking index jumped by 1.41 per cent.
India-Pakistan tensions: History shows Sensex bounced back stronger after every conflict
Even as tensions between India and Pakistan rise once again following the barbaric Pahalgam terror attack, Indian stock markets have showcased resilience every time the two neighbouring nations went into conflict.
Indian stock market opens higher, Sensex above 80,000
The Indian equity benchmark indices opened higher on Friday amid positive global cues, as buying was seen in the IT, pharma and auto sectors in the early trade.
Adani’s cement major ACC clocks highest-ever annual PAT at Rs 2,402 crore in FY25
Leading cement and building materials company ACC Limited on Thursday reported highest-ever annual profit after tax (PAT) at Rs 2,402 crore in FY25, up by 3 per cent.
Sensex, Nifty extend winning streak for sixth day, rise nearly 8 pc in 6 sessions
The Indian stock market continued its upward journey for the sixth straight trading session on Tuesday, supported by gains in fast-moving consumer goods (FMCG) and private banking stocks.
Gold touches Rs 1 lakh per 10 grams for 1st time
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold rose sharply from Rs 96,670 to Rs 1,00,000 per 10 grams -- a jump of Rs 3,300 within 24 hours.
Indian stock market opens higher, Sensex above 79,500
The domestic benchmark indices opened marginally up on Tuesday amid positive global cues, as buying was seen in the auto, PSU bank and financial services sectors in the early trade.
India’s forex, money markets have doubled in last 4 years: RBI Governor
Addressing the 24th FIMMDA-PDAI annual conference in Bali this weekend, Malhotra said the levels of transparency in Indian markets are at par with the best in the world.