MUMBAI: Stock market ended trading day on a positive note on Monday, with both major indices closing higher.
The Sensex surged by 498.58 points, settling at 78,540.17, while the Nifty rose by 165.95 points, closing at 23,753.45. The rally was supported by broad-based buying, although market experts suggest that the short-term outlook may remain cautious.
Among the Nifty companies, 32 stocks advanced and 18 declined. Leading the gainers, JSW Steel, ITC, Hindalco, Trent, and HDFC Bank saw significant increases in their stock prices, buoying overall market sentiment.
However, Hero MotoCorp, Maruti, HCL Tech, HDFC Life, and Bajaj Finserv emerged as the top losers, with their stocks experiencing declines.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that while short-term rebounds could occur, these may be followed by renewed Foreign Institutional Investor (FII) selling.
He said, “In the short run there will be market rebounds which may be followed by renewed FII selling. A sustained rally is possible only when we have indications of a growth revival in the economy. This is likely in early 2025.”
Meanwhile, Vinod Nair, Head of Research at Geojit Financial Services, noted that the Indian market showed optimism following the recent sell-off.
He said, “The Indian market demonstrated optimism following the recent sell-off. The lower-than-expected US PCE print bolstered investor sentiment in interest rate-sensitive sectors. Broad-based buying was observed, with the metals sector notably benefiting from the anticipated increase in steel import taxes.
“Despite the positive market sentiment, the short-term outlook is expected to remain sideways due to a lack of new catalysts and the impact of the festive season and holidays,” he added.
The Indian markets rebounded on Monday following consecutive declines in the previous three trading sessions. The Nifty 50 index gained 150 points, or 0.64 per cent, opening at 23,738.20 points, while the BSE Sensex climbed over 448 points to open at 78,490.19 points.
Experts pointed out that for a sustained rally, significant advancements are needed in tackling inflation, additional rate cuts are necessary, and reduced turbulence from Trump 2.0 would be crucial. Despite these challenges, the possibility of a year-end rally remains intact. (ANI)