MUMBAI — The Indian stock market rebounded sharply on Monday, defying geopolitical tensions and closing with strong gains, as banking stocks rallied and optimism grew around a potential new India-U.S. trade agreement.
The Sensex opened with a modest gain of around 120 points at 79,344 but steadily climbed throughout the session, reaching a fresh yearly high of 80,322 before closing at 80,218. The index ended the day up 1,006 points, or 1.27 percent, marking a significant turnaround. Similarly, the Nifty 50 index gained 289 points, or 1.2 percent, finishing at 24,329 after oscillating between 24,054 and 24,355.
“The Nifty faces resistance at the 24,360 level, and the index may consolidate around this range unless there is a decisive breakout,” said Rupak De, senior technical analyst at LKP Securities. He noted that a breach above 24,360 could push the index toward 24,550, where the 61.8 percent Fibonacci retracement of the previous decline from 26,277 to 21,743 lies.
Banking stocks were the primary drivers of Monday’s rally. Major players like ICICI Bank, HDFC Bank, Axis Bank, and SBI collectively contributed 340 points to the Sensex’s gains, accounting for nearly 75 percent of the index’s overall rise.
Other top-performing stocks included Sun Pharma, Mahindra & Mahindra, Tata Steel, Tata Motors, Larsen & Toubro, and the aforementioned banking giants, all of which posted gains between 2 and 3 percent.
However, not all sectors participated in the rally. Technology stocks faced some pressure, with HCL Technologies sliding nearly 2 percent. Other laggards included UltraTech Cement, Hindustan Unilever, and Eicher Motors, which posted modest losses.
In the broader market, mid- and small-cap stocks also fared well. The BSE MidCap index rose by 1.4 percent, while the SmallCap index added 0.4 percent, reflecting broader market strength.
Sectoral indices ended predominantly in the green. The BSE Oil & Gas index led sectoral gains with a nearly 3 percent jump, followed by strong performances in banking, capital goods, auto, metal, and healthcare, each climbing more than 1.5 percent.
The rupee also strengthened, appreciating 25 paise to close at 84.98 against the U.S. dollar. The surge in capital markets, particularly the 1.41 percent rise in the banking index, provided support to the domestic currency.
The strong rebound in Indian equities highlights investor confidence despite global uncertainties, fueled by optimism over trade relations and robust domestic economic indicators. (Source: IANS)
