Indian stock markets began the holiday-shortened week with a strong rally, mirroring the upbeat mood in several Asian markets. After six consecutive weeks of declines, both benchmark indices staged an impressive recovery. The Sensex surged by 746.29 points, closing at 80,604.08, while the Nifty jumped 221.75 points to end the day at 24,585.05. The gains nearly erased the losses suffered last Friday, with market sentiment lifted by reports that peace talks between the United States and Russia could take place later this week.
Across Asia, markets displayed mixed trends. Japan, Taiwan, Hong Kong, China, Malaysia, and Indonesia recorded gains of up to 1.85 percent, while Singapore, the Philippines, and South Korea ended in the red. The positive global environment was also supported by record highs on Wall Street last Friday, though European markets delivered a mixed performance.
Back home, the rally was further fueled by renewed interest from foreign institutional investors, who brought in ₹1,933 crore on Friday. Public sector banks were among the strongest performers after State Bank of India delivered better-than-expected first-quarter results. According to Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, these developments encouraged investors to look past recent tariff-related concerns and focus more on earnings, which are now nearing the end of the reporting season.
Ajit Mishra, Senior Vice President of Research at Religare Broking, observed that the Nifty has recently struggled to maintain early-week momentum. However, the current rebound appears more resilient, supported by oversold positions in heavyweight stocks. He noted that a decisive close above the 24,600 mark could open the path for further gains toward the 24,800 to 25,000 range.
Market breadth turned positive after several sessions of weakness, with 2,252 stocks advancing compared to 1,912 declines on the BSE. The BSE Midcap index gained 0.79 percent and the BSE Smallcap index rose 0.35 percent, though both underperformed the main benchmarks. Sector-wise, the PSU Bank index led the way with a rise of over 2 percent, followed by realty, auto, and healthcare stocks. Consumer durables was the only major sector to end in the red.
Investor wealth saw a sharp jump, increasing by ₹3.5 lakh crore to reach ₹444.13 lakh crore. Domestic institutional investors continued to buy aggressively, making purchases worth ₹5,972.36 crore, while foreign portfolio investors booked profits worth ₹1,202.65 crore, according to provisional BSE data.
With global cues supportive and domestic corporate earnings offering positive surprises, Monday’s rebound has sparked optimism that Indian markets may finally break out of their recent losing streak. However, traders and long-term investors alike will be watching closely to see if the momentum carries through the week.
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