The BSE Sensex rebounded sharply on Monday, climbing back above the psychological 80,000 level after five consecutive sessions of losses, as strong bank earnings and easing oil prices boosted investor sentiment.

The 30-share index closed at 80,005.04, gaining 602.75 points or 0.76 per cent from its previous close.

The broader NSE Nifty 50 ended at 24,339.15, up 158.35 points or 0.65 per cent from its last close. The positive momentum was visible across sectors, with PSU Banks leading the gains with a nearly 4 per cent rally.

Among individual stocks, Shriram Finance emerged as the top gainer on NSE, surging 5.35 per cent after reporting an 18 per cent year-on-year growth in profit after tax for the September quarter, along with improved asset quality metrics.

Other major gainers included Adani Enterprises (4.07 per cent), ICICI Bank (3.10 per cent), JSW Steel (3 per cent), and Wipro (2.90 per cent).

On the flip side, Coal India led the losses, declining 3.76 per cent, followed by Bajaj Auto (-2.07 per cent), Axis Bank (-1.29 per cent), Hero Motocorp (-1.19 per cent), and BEL (-0.92 per cent).

Market breadth remained positive with 2,581 stocks advancing compared to 1,411 declines on the BSE. A total of 4,153 stocks were traded, with 161 remaining unchanged.

The session saw 133 stocks hitting their 52-week highs, while 150 touched their 52-week lows.

“BSE Sensex climbed back above 80,000 mark on Monday after a five-day weakness as oversold conditions, lack of aggressive FPI selling, sense of relief post Israel’s retaliatory strike against Iran -- all led to an improvement in sentiments,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

The broader market indices moved in tandem with the benchmark, with both midcap and smallcap indices gaining nearly a percent.

The Nifty Next 50 rose 0.45 per cent to close at 70,030.55, while the Nifty Midcap Select gained 0.64 per cent to end at 12,400.20.

Banking stocks showed strength with the Nifty Bank index climbing 0.93 per cent to 51,259.30, supported by ICICI Bank’s better-than-expected quarterly results. The Nifty Financial Services index added 0.54 per cent to close at 23,861.85.

ICICI Bank led the gainers among Sensex stocks, rising 2.96 per cent to ₹1,292.65, followed by Adani Ports (+2.80 per cent) and JSW Steel (+2.68 per cent). Tata Steel and Mahindra & Mahindra also gained 2.50 per cent and 2.36 per cent, respectively.

On the losing side, Axis Bank fell by 1.43 per cent, with Kotak Bank down 1.08 per cent. Tech Mahindra, HDFC Bank, and Maruti Suzuki recorded smaller declines of 0.72 per cent, 0.48 per cent, and 0.12 per cent, respectively.

“Indian shares closed higher on Monday, rebounding after five consecutive sessions of losses as the market reacted positively to strong bank earnings and easing oil prices, with hopes of limited retaliatory actions in the Middle East boosting sentiment,” noted Ameya Ranadive, Senior Technical Analyst at StoxBox.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd. (A Pantomath Group Company), added, “Technically, Nifty formed a bullish harami candle on the daily chart, which suggests potential for an upward movement, with 24,074 acting as immediate support. Bank Nifty opened with a gap-up and remained strong, closing positively at 51,259. On a daily scale, the index formed a bullish harami candle near the 150-DEMA support at 50,390, signaling strength.”

However, market experts advised caution despite the day’s gains. “Participants should not read much into a single day rebound and await a decisive close above 24,500 to signal further recovery, as a failure to do so could lead to a resumption of the decline,” cautioned Ajit Mishra, SVP Research at Religare Broking Ltd.

FIIs/FPIs continued their selling trend in the capital market with a net outflow of ₹3,036.75 crore, while DIIs reinforced their buying position with a significant net inflow of ₹4,159.29 crore.

In other investor categories, clients recorded a net outflow of ₹109.60 crore, and NRIs showed a minor net outflow of ₹7.32 crore. Proprietary traders contributed positively with a net inflow of ₹37.26 crore.

The market’s positive momentum was also reflected in the India VIX, which fell 3.11 per cent to 14.18, indicating reduced volatility expectations.

The session saw 357 stocks hitting their upper circuit limits, while 310 stocks touched their lower circuits.

“Amid higher valuation concerns, markets had corrected sharply last week and hence the recovery was seen today. Also, short covering ahead of the monthly expiry this week triggered a rally in domestic markets, although the undertone remains cautious,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

Published on October 28, 2024