Mumbai: Stock market started the week on a strong note, as the benchmark BSE Sensex jumped 746 points on Monday, closing above the important 80,000 mark once again. The Sensex ended the day at 80,604.08, rising 0.93 percent, after having climbed as much as 778 points during the session. The broader NSE Nifty also surged by 221.75 points, or 0.91 percent, to settle at 24,585.05.
This sharp recovery came after a steep fall on Friday, when the Sensex had dropped by 765 points and the Nifty by over 230 points. The rebound was mainly driven by renewed buying interest in oil, auto, and banking stocks, as well as fresh inflows from foreign institutional investors (FIIs). According to exchange data, FIIs bought Indian equities worth Rs 1,932.81 crore on Friday, which gave a boost to market sentiment.
Investor confidence was also lifted by positive cues from global markets, especially the US, where indices ended higher last Friday. Adding to the optimism is the anticipation around an upcoming summit between the US and Russia, which investors hope could help ease current geopolitical tensions. This has led to a "relief rally" after recent losses, according to Vinod Nair, Head of Research at Geojit Financial Services. However, he also noted that some caution remains, as markets are still trying to assess the full impact of US trade and economic conditions.
Among the top-performing stocks in the Sensex were Tata Motors, Eternal, Trent, State Bank of India, UltraTech Cement, and Larsen & Toubro. These companies saw strong buying interest. On the other hand, a few stocks like Bharat Electronics, Bharti Airtel, and Maruti ended the day in the red.
Global market performance was mixed. Asian markets like Shanghai and Hong Kong closed in positive territory, while South Korea’s Kospi ended slightly lower. Japanese markets remained closed for a public holiday. In Europe, most markets were trading with mild losses during Indian market hours, while the US had closed higher on Friday, setting a positive tone for the week.
Meanwhile, the price of Brent crude oil saw a slight dip of 0.45 percent, bringing it to $66.29 per barrel, which also contributed to positive market sentiment.
Overall, Monday’s market rally brought some relief to investors after a weak end to last week. However, experts say that while global cues and foreign inflows have helped, market direction in the coming days will depend on how global economic and geopolitical events unfold.
