Mumbai: Indian stock markets rebounded strongly on Monday, with the benchmark indices Sensex and Nifty closing higher, driven by a global market rally and renewed buying interest in banking stocks.
The BSE Sensex surged 341.04 points, or 0.46 per cent, to settle at 74,169.95, snapping its five-day losing streak. The index had climbed as much as 547.44 points, or 0.74 per cent, to hit an intraday high of 74,376.35. Meanwhile, the NSE Nifty advanced by 111.55 points, or 0.50 per cent, to close at 22,508.75.
Key Gainers and Laggards
Leading the gains on the Sensex were Bajaj Finserv, Mahindra & Mahindra, Axis Bank, Bajaj Finance, Adani Ports, ICICI Bank, Zomato, and UltraTech Cement. In contrast, stocks such as ITC, Nestle, State Bank of India, Reliance Industries, Asian Paints, and Tata Consultancy Services underperformed.
IndusInd Bank saw strong buying interest, soaring 5.30 per cent in intraday trading. The rally followed the Reserve Bank of India’s (RBI) reassurance over the bank’s financial health despite an estimated Rs 2,100 crore accounting discrepancy. The stock eventually settled 0.72 per cent higher at Rs 676.95.
Global Cues and Market Sentiment
A robust rally in global equity markets supported the positive sentiment in Indian stocks. Major Asian indices, including those in Seoul, Tokyo, Shanghai, and Hong Kong, ended in the green, while European stocks were also trading higher. The US markets closed with strong gains on Friday, further boosting investor confidence.
“Despite a minor setback, optimism across global markets helped local indices recover. However, investors remain cautious due to uncertainties surrounding the impact of US tariff policies on major economies, including India,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Wholesale Inflation Edges Up
Adding to economic developments, government data released on Monday showed that wholesale price inflation (WPI) rose marginally to 2.38 per cent in February. The increase was primarily driven by costlier manufactured food products such as vegetable oil and beverages.
Foreign Investors Continue Selling
Foreign institutional investors (FIIs) remained net sellers, offloading equities worth Rs 792.90 crore on Thursday, as per exchange data. With markets closed on Friday due to Holi, the total FII outflow for 2025 so far stands at Rs 1.42 lakh crore (USD16.5 billion), based on depository data.
“The market witnessed a positive session, led by gains in healthcare and financial stocks. However, limited domestic investor participation due to tariff-related concerns may keep the markets volatile in the near term,” said Vinod Nair, Head of Research, Geojit Financial Services.
Focus on Fed and BoJ Meetings
Investors are now looking ahead to upcoming monetary policy meetings of the US Federal Reserve (Fed) and the Bank of Japan (BoJ). “There are expectations that both central banks will maintain their current stance amid inflation risks linked to tariff uncertainties,” Nair added.
Oil Prices Surge
In the commodities market, global oil benchmark Brent crude jumped 1.06 per cent to trade at USD71.33 per barrel, reflecting supply concerns and market optimism.
Previous Session Recap
On Thursday, before the Holi holiday, the Sensex had declined 200.85 points, or 0.27 per cent, closing at 73,828.91. Similarly, the Nifty dropped 73.30 points, or 0.33 per cent, to settle at 22,397.20.
With improving domestic indicators and a focus on corporate earnings, markets may see further momentum in the coming sessions.
