Sensex, Nifty take winning run to fourth session; investor wealth swells by over Rs 8.2 lakh crore

Indian equity benchmarks extended their gains for the fourth consecutive session on Monday, supported by buying in financial, automobile and select heavyweight stocks. The 30-share BSE Sensex pack climbed 521.16 points or 0.67 per cent to settle at 78,285.07, while the NSE Nifty50 index advanced 159.50 points or 0.66 per cent to close at 24,430.35.

The broader indices also ended in the green, with Nifty Midcap100 gaining 0.45 per cent and Nifty Smallcap100 rising 0.75 per cent.

Among the key contributors to the Sensex's rally were HDFC Bank Ltd, Reliance Industries Ltd (RIL), ICICI Bank Ltd, Mahindra & Mahindra Ltd (M&M), Bharti Airtel Ltd, Bharat Electronics Ltd (BEL), Larsen & Toubro Ltd (L&T), Eternal Ltd and Sun Pharmaceutical Industries Ltd.

The market rally added to investor wealth, with the combined market capitalisation (m-cap) of BSE-listed companies increasing by around Rs 2.13 lakh crore during the session to Rs 482.33 lakh crore. Over the last four trading sessions, investors have collectively gained approximately Rs 8.23 lakh crore in notional wealth.

Vinod Nair, Head of Research at Geojit Investments, said, "Indian equities traded with a positive bias despite mixed global cues, supported by stable crude prices. Continued softness in crude would support inflation, the current account balance, OMC profitability, and overall macro stability. Globally, profit-booking in crowded AI-led trades impacted the global market while India could perform well led by large caps due to improvement in FIIs inflows trend."

He added, "On the domestic front, financials, autos, realty, and oil & gas led the gains. Financials were supported by expectations of healthy private bank earnings, while autos benefited from strong volume trends and improving demand outlook. Realty remained buoyed by resilient housing demand."

Ponmudi R, CEO of Enrich Money, said Indian equity markets began the week on a positive note, supported by subdued crude oil prices, easing geopolitical tensions and growing expectations of a less hawkish monetary policy stance from the US Federal Reserve.

"Energy markets continued to stabilise as easing geopolitical tensions in the Middle East and uninterrupted oil flows through the Strait of Hormuz alleviated concerns over potential supply disruptions. Crude oil prices have retreated to near pre-conflict levels, with international benchmark prices trading around $68 per barrel and domestic crude hovering near the Rs 6,500 mark," he also stated.

Nifty outlook

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said, "Going ahead, the 24,570–24,600 zone is expected to act as the next crucial resistance area for Nifty, as the previous swing high is positioned around these levels. A decisive and sustained move above 24,600 would further strengthen the bullish setup and could trigger an accelerated upside move towards 24,750, followed by 24,900 in the short term."

He added, "On the downside, the support base has shifted higher and is now placed in the 24,300–24,280 zone. As long as the index sustains above this support band, the positive momentum is likely to remain intact, and any dip towards these levels could attract buying interest."