Mumbai– Indian equity markets began the week on a strong note Monday, fueled by a sharp rally in Adani Group stocks and gains in select auto and banking shares. The positive momentum was further supported by steady foreign inflows and easing global trade tensions.
The BSE Sensex opened about 160 points higher at 80,662 and surged to an intraday high of 81,049 before paring some gains to close at 80,797, up 295 points. The NSE Nifty followed a similar trajectory, touching a high of 24,526 and ending the session with a 114-point gain, or 0.5%, at 24,461.
“Markets started the week on a firm footing, lifted by steady foreign inflows and optimism around an impending India-US trade deal,” said Vikram Kasat, Head of Advisory at PL Capital. He added that strength in Asian currencies and muted global trading activity due to market holidays contributed to the upbeat sentiment.
Adani Group stocks stole the spotlight, jumping as much as 11% amid reports that senior executives from the conglomerate had held discussions with officials from former U.S. President Donald Trump’s administration. Adani Ports led the Sensex gainers, soaring 6.3%.
Other top performers included Mahindra & Mahindra, ITC, Power Grid Corporation, and Tata Motors. Meanwhile, Kotak Mahindra Bank emerged as the biggest laggard, falling 4.5%. State Bank of India and Axis Bank also ended in negative territory, dragging the banking index lower.
Despite weakness in select bank stocks, broader market indices outperformed. The BSE MidCap index climbed 1.5%, while the SmallCap index rose 1.2%.
Among sectors, oil and gas stocks saw notable buying interest, with the BSE Oil & Gas index rising 2%, driven by strength in oil marketing companies. Consumer durables, energy, and FMCG sectors also registered gains of over 1% each. However, the BSE Bankex closed nearly 1% lower due to selling pressure in key banking names.
“The upbeat start to the week reflects investor optimism, driven by corporate developments and momentum in specific sectors,” said market analysts.
The Indian rupee also strengthened, appreciating 13 paise to close at 84.32 against the U.S. dollar, supported by continued foreign institutional investor (FII) inflows.
Looking ahead, Jateen Trivedi, VP Research Analyst at LKP Securities, expects the rupee to trade in a range of 84.00 to 84.75. “Global risk sentiment and commodity price movements will continue to guide intraday volatility,” he noted.
Meanwhile, gold prices surged on Monday as investors priced in growing expectations of a potential U.S. Federal Reserve rate cut later this week, driving strong demand for the precious metal. (Source: IANS)
