The Sensex continued its winning streak for the sixth consecutive session on Monday, with the benchmark indices breaching the psychological 78,000 mark. Banking and financial stocks led the broad-based buying, resulting in the Sensex closing at 77,984.38, up 1,078.87 points or 1.40 per cent, while the Nifty settled at 23,658.35, gaining 307.95 points or 1.32 per cent.
Short covering ahead of the monthly F&O expiry later in the week fueled the rally, pushing the Sensex above the 78k mark intraday. The optimism of foreign investors, coupled with strong US and European market cues, further boosted the sentiment in the market.
The Indian stock market showed resilience, with the Sensex rising by around 1,200 points and the Nifty surpassing the 23,700 mark. Banking and energy sectors performed strongly, supported by Foreign Portfolio Investors (FPIs) returning as net buyers.
Banking stocks played a significant role in extending market gains, with the Nifty Bank index climbing 2.20 per cent to close at 51,704.95. The Nifty Financial Services index also posted strong gains, rising by 1.99 per cent to end at 25,057.55.
Kotak Mahindra Bank emerged as the top gainer on the NSE, surging by 4.86 per cent. Other major gainers included NTPC, State Bank of India, Tech Mahindra, and Power Grid Corporation. On the other hand, IndusInd Bank was the biggest loser, falling by 2.79 per cent.
Market breadth remained positive for the fifth consecutive session, with more stocks advancing than declining on the BSE. 92 stocks hit their 52-week highs during the session, while 102 touched their 52-week lows.
Foreign institutional investors (FIIs) continued to be net buyers in Indian equities, with a significant inflow on Friday. The Indian rupee also appreciated against the US dollar, marking its longest winning streak in years.
Technical analysts remained bullish on the market outlook, with Nifty showing strength above key resistance levels. The broader market also performed well, with all sectoral indices ending in the green.
While the market showed positive momentum, global uncertainties could introduce volatility. Investors were advised to stay cautious and consider external risks when making decisions.
The sustainability of the market rally will depend on upcoming economic indicators and corporate earnings. Analysts are closely watching PMI data, Q4 earnings results, and developments related to reciprocal US tariffs.
The article was originally published on March 24, 2025.
