Mumbai: After three consecutive days of losses, the BSE Sensex made a strong comeback on Monday, jumping by 554.84 points to close at 80,364.49, thanks to renewed buying in key sectors like IT, auto, and banking. Investors were encouraged by India’s better-than-expected GDP data and value buying across the board. The Sensex opened higher and at one point surged over 597 points during the day, touching a high of 80,406.84.
The broader Nifty 50 index also saw strong gains, rising 198.20 points or 0.81 percent to close at 24,625.05. Out of the 30 Sensex stocks, 23 closed in the green, reflecting widespread positive sentiment.
Top performers of the day included Mahindra & Mahindra, Tata Motors, Trent, Infosys, Eternal, and Asian Paints. On the other hand, Sun Pharma, ITC, Hindustan Unilever, and Titan were among the few laggards that ended in the red.
The main reason behind this rally was the strong Q1 GDP growth. India’s economy grew 7.8 percent in April to June, the fastest pace in five quarters. Although US President Donald Trump’s new tariffs may impact key exports in the future, the current data reassured investors of India's economic resilience.
According to Vinod Nair, Head of Research at Geojit Financial Services, the upbeat GDP numbers and hopes of GST rate rationalisation in the upcoming council meeting are boosting investor mood, especially in auto and consumer goods sectors.
In global markets, Asian indices were mixed. Shanghai and Hong Kong closed higher, while South Korea and Japan ended lower. European markets were mostly trading in the green. Meanwhile, US markets closed lower on Friday.
Brent crude also saw an uptick, rising 0.92 percent to USD 68.10 per barrel.
On the trading front, Foreign Institutional Investors (FIIs) sold stocks worth Rs 8,312.66 crore on Friday, while Domestic Institutional Investors (DIIs) bought Rs 11,487.64 crore worth of equities, showing strong domestic support for the market.
