Benchmark stock market indices closed higher on Monday despite profit-taking following recent gains. The overall market sentiment remained positive, supported by reduced global uncertainty and selective purchasing in large-cap equities.
The S&P BSE Sensex surged by 319.07 points to end at 83,535.35, while the NSE Nifty 50 climbed 82.05 points to settle at 25,574.35. Most sectoral indices closed in positive territory, with notable gains in information technology, finance, and metals.
Leading the gainers were Infosys, Bajaj Finance, HCLTech, Coal India, and Asian Paints, whereas Trent, Max Health, Tata Consumer Products, and Apollo Hospitals finished in the negative zone.
Global markets’ positive performance influenced domestic equities, with reports indicating progress in resolving the longest-ever U.S. government shutdown. This development alleviated short-term uncertainty and boosted investor confidence, leading to optimistic trading sentiments.
According to Ponmudi R, CEO of Enrich Money, the easing global uncertainty, combined with strong domestic inflows and robust earnings, has helped Indian markets stay resilient. Vinod Nair, Head of Research at Geojit Investments Limited, emphasized that the potential end of the U.S. government shutdown and increased foreign investments have bolstered market optimism.
Technically, the Nifty 50 exhibited a modest rebound within its upward channel pattern, maintaining stability near crucial support levels. Analysts anticipate continued bullish momentum, with support around 25,400 and resistance near 26,350.
The Bank Nifty maintained its upward trend despite consolidation within a narrow range, with support at 57,300 and resistance at 58,100. Analysts view this consolidation as healthy, projecting potential upticks above 58,100.
Analysts anticipate the domestic market to remain stable in the short term, supported by positive global sentiment and ongoing Q2 earnings analysis. While intermittent profit booking may occur, the market outlook remains positive due to strong fundamentals, consistent foreign investments, and healthy corporate performances.