Stock market closes on positive note, Sensex gains 638 pts

MUMBAI: The Indian stock indices closed on a positive note on Monday. At close, Nifty was at 26,172.40, up 206 points, or 0.78 per cent, while Sensex closed at 85,567.48, up 638.12 points, or 0.75 per cent. The BSE Midcap index rose by 0.86 per cent and the Smallcap index jumped 1.12 per cent.

Almost all the major sectoral indices traded in positive territory. Sectors including IT, metals, capital goods, and financials recorded gains, while real estate and consumer durables were the key laggards. The rupee rose for the second consecutive session as it opened 24 paise up at 89.41 against the US dollar after closing at 89.65.

Jateen Trivedi, VP and research analyst-commodity and currency, LKP Securities, said the rupee traded flat near 89.65, holding in a narrow 89.45-89.65 range as a weaker dollar index around 98.45 and positive sentiment in domestic capital markets offered support.

“The currency has shown a technical reversal after recent intervention-led buying from last week’s lows near 91, stabilising the currency for now, improving short-term stability. Market focus now shifts to key US data, including the PCE price index, new home sales, and weekly jobless claims, which could drive fresh volatility. Technically, support is seen near 90.00, while resistance is placed around 89.25”, he said.

Shrikant Chouhan, head, equity research, Kotak Securities, said the benchmark indices witnessed a promising rally. “The Nifty ended 206 points higher, while the Sensex was up by 638 points. Among sectors, almost all the major sectoral indices traded in positive territory, but the Defence index outperformed today, rallying over 3 percent. Technically, after a gap-up open, the market maintained positive momentum throughout the day”.

“On daily charts, it has formed a long bullish candle and closed above the 20-day SMA (Simple Moving Average), which is largely positive. We are of the view that the short-term market texture is bullish, but buy on intraday dips and sell on rallies would be the ideal strategy for day traders,” he said.

Vinod Nair, head of research, Geojit Investments Limited, said Indian markets extended their year-end rally, supported by strong liquidity and global cues, as expectations of further Fed easing in 2026 continue to underpin growth.

“FIIs turned net buyers, reinforcing the positive tone, with IT and metals leading gains. Gold hit a record high, driven by rate-cut expectations, robust central bank buying, sustained ETF inflows, and heightened global tensions, including Ukraine’s strike on a Russian vessel”, he said.

“Investors now await the Q3 GDP estimate for policy clarity, with consensus pointing to resilient growth. However, caution persists amid limited progress on trade negotiations, geopolitical uncertainties, and crude price volatility,” Nair added.

Rupak De, senior technical analyst at LKP Securities, said the Nifty continues to move higher following a falling wedge breakout, indicating improving bullish sentiment in the short term.

“The RSI has delivered a downward consolidation breakout on the daily timeframe, signalling strong positive momentum in the market. The trend is likely to favour the bulls as long as the index remains above 25,900, making a buy-on-dips strategy favourable. On the higher end, 26,315 may act as immediate resistance, above which a further rally could unfold”. (ANI)