Nifty, Sensex rebound and close with gains amid strong buying in banks, realty and midcaps

MUMBAI: Indian equity markets witnessed a volatile trading session on Monday, opening in the red, but recovering sharply by the close, supported by value buying and a rebound in oversold sectors.

The Nifty 50 index closed at 22,968.25 with a gain of 255.15 points, or 1.12 per cent, while the BSE Sensex closed at 74,106.85, up by 787.30 points, or 1.07 per cent. Despite early weakness, both indices managed to close with gains as buying interest picked up during the session.

Market experts attributed the recovery to value buying across sectors and a bounce-back in segments that had seen recent corrections. Vinod Nair, head of research at Geojit Investments, said, “Domestic equities staged a strong rally as value buying gained traction across the board, with oversold sectors such as Finance, Realty, and Midcaps showing notable strength”.

He added that crude prices softened marginally on reports of ceasefire efforts, while positive provisional banking data supported interest in rate-sensitive sectors. However, he cautioned that overall sentiment remains fragile due to inflation concerns and global uncertainties. “With the RBI policy, US CPI, crude trajectory, and geopolitical developments all converging this week, markets are likely to remain headline-driven,” he said.

According to him, despite the current cautious trend, there is potential upside if geopolitical tensions ease. “Given the deep discount in the broader market, there is meaningful upside potential if a credible ceasefire emerges,” he added.

Brent crude prices remained elevated but declined from earlier levels, trading at USD 108.51 per barrel during the session. In the broader market, strong gains were seen across indices. Nifty 100 rose by more than 1 per cent, while Nifty Midcap 100 surged by 1.52 per cent and Nifty Smallcap 100 gained 1.29 per cent.

Sectorally, most indices ended in the green. Nifty PSU Bank index rose by 2.33 per cent, while Nifty Realty and Nifty Consumer Durables also gained more than 2 per cent each. Nifty Auto was up by 1.08 per cent, Nifty FMCG gained 0.8 per cent and Nifty IT advanced by 0.64 per cent. In the commodities market, gold prices continued their upward trend, trading at Rs 1,50,890 per 10 grams for 24 karat, while silver prices also rose to Rs 2,34,531 per kg.

Other Asian markets showed a mixed trend. Japan’s Nikkei 225 index gained 0.81 per cent to 53,560, Singapore’s Straits Times rose by 0.5 per cent to 4,972 and South Korea’s KOSPI index surged by 1.34 per cent to 5,450. However, Hong Kong’s Hang Seng index declined by 0.71 per cent to 25,116.

Monday’s session reflected cautious optimism in the markets, with investors responding to value opportunities while remaining watchful of global developments and upcoming economic triggers. (ANI)