Business

IIE DIGITAL DESK : The strong start to the trading week, Indian equity benchmarks rallied sharply on Monday morning, buoyed by positive global cues and renewed investor confidence. The BSE Sensex surged over 562 points in early trade, while the NSE Nifty climbed 175.7 points, marking a robust upward momentum in the markets.

The Sensex opened higher and extended gains swiftly, scaling past the 76,720 mark within minutes of the opening bell. At around 10:15 AM, the benchmark index was up by 562.44 points or 0.74%, trading near 76,773. Meanwhile, the broader Nifty 50 advanced by 175.70 points or 0.76%, reaching 23,325.30, comfortably breaching the 23,300 level for the first time in several sessions.

Investor sentiment was lifted by a combination of domestic and global factors. Positive signals from Asian markets, where most indices were trading in the green, helped fuel early optimism. Japan’s Nikkei, South Korea’s Kospi, and Hong Kong’s Hang Seng were among the top gainers in the Asia-Pacific region, reflecting improved global risk appetite.

Back home, hopes of sustained foreign portfolio investment (FPI) inflows and expectations that the Reserve Bank of India may adopt a more accommodative stance in the coming months also contributed to the bullish tone. Moreover, softening crude oil prices and easing U.S. bond yields added to the positive momentum.

Among the top gainers in the Sensex pack were heavyweights from the financial and IT sectors. HDFC Bank, ICICI Bank, Infosys, and TCS led the rally, indicating strong institutional buying in blue-chip stocks. Auto majors like Tata Motors and Mahindra & Mahindra also contributed significantly to the index's gains, aided by optimistic sales forecasts and improved rural demand.

The broader market also mirrored the upbeat trend, with the BSE Midcap and Smallcap indices gaining over 0.7% and 0.8% respectively. Sectorally, all major indices were in the green. The Nifty Bank index climbed nearly 1%, driven by strong performances from private banks. The IT index added over 0.9%, while FMCG and energy stocks also saw notable gains.

Market analysts suggest that the rally could be sustained if macroeconomic indicators remain stable and monsoon forecasts hold up. According to analysts, with June being a critical month for sowing in the agricultural sector, a normal monsoon could have a positive impact on rural consumption and inflation trends.

From a technical perspective, the Nifty's breakout above 23,300 is seen as a bullish signal, potentially setting the stage for further upward movement toward the 23,500–23,600 zone, provided the index sustains above key support levels near 23,100.

Market participants are now eyeing upcoming macroeconomic data, including India’s GDP figures for the March quarter and fiscal year 2024, which are scheduled to be released later this week. Additionally, global investors will be closely watching U.S. inflation data and commentary from Federal Reserve officials, which could influence the trajectory of interest rates globally.

Despite the strong rally, some caution remains due to geopolitical tensions and concerns over global growth slowdown. However, for now, the sentiment appears firmly tilted toward the bulls, with traders and investors betting on India’s economic resilience and corporate earnings potential.

As the session progresses, analysts advise investors to remain selective and focus on fundamentally strong companies, especially in the banking, infrastructure, and IT sectors, which are likely to benefit from the ongoing economic recovery.

Overall, Monday’s sharp upmove highlights the underlying strength in the Indian markets and reinforces investor confidence in the long-term growth story of the country.