Sensex, Nifty Snap 3-Day Losing Streak, IT & Auto Stocks Lead Market Rebound On Global & Domestic Optimism

Mumbai: The domestic equity markets ended higher on Monday, snapping a three-day losing streak, supported by buying in IT, auto and select banking counters. Optimism over a potential resolution to the US government shutdown and renewed foreign inflows helped lift investor sentiment.

Indices Rebound After Three-Day Slide

The BSE Sensex climbed 319 points, or 0.38 per cent, to close at 83,535.35, after starting flat at 83,198.20. The index gained nearly 500 points intraday to hit a high of 83,754.49, led by strong buying in technology and automobile majors. The NSE Nifty 50 also advanced 82 points, or 0.32 per cent, to settle at 25,574.35.

Vinod Nair, Head of Research at Geojit Investments, said that expectations of the US government averting a shutdown and favourable Q2 earnings prompted renewed FII buying. “The rise in the US 10-year Treasury yield reflects improving risk appetite toward equities with the reopening of the federal government,” he noted. Strengthening domestic macro indicators are also likely to support upward revisions in H2 FY26 earnings, he added.

Sectoral Strength Led by IT and Auto

IT and auto stocks powered the upmove, with Infosys, HCL Tech, TCS, Tech Mahindra, Tata Motors, Asian Paints, Maruti Suzuki, L&T, Bharti Airtel, and Titan among the top gainers. However, Trent, PowerGrid, Ultratech Cement, Mahindra & Mahindra, and Axis Bank ended lower.

Most sectoral indices ended in the green, with Nifty IT rising 1.62 per cent, Nifty Auto up 0.30 per cent, Nifty Financial Services gaining 0.24 per cent, and Nifty Bank adding 0.10 per cent. FMCG stocks bucked the trend and ended in the red.

Rupee Holds Steady Ahead of Key Data

The rupee traded flat at 88.66 as dollar weakness was offset by continued FII outflows. According to Jateen Trivedi of LKP Securities, the RBI likely intervened around the 88.75–88.90 zone to cap volatility. Traders now await key CPI data from India and the US for near-term cues, with the rupee expected to move within 88.45–88.90.