Equity markets saw a positive opening on Monday, driven mainly by a strong recovery in IT stocks. The S&P BSE Sensex gained 116 points, reaching 85,348 in early trading, while the NSE Nifty50 rose by 42 points, hovering around 26,110.
The broader market indices also reflected the upbeat start, led by notable increases in IT giants such as Tech Mahindra and Infosys, both surging over 2%. HCLTech, Wipro, and Eicher Motors also posted significant gains. Conversely, stocks like Eternal, BEL, M&M, TMPV, and Power Grid were among the notable decliners during the initial session.
Dr. VK Vijayakumar, Geojit Financial Services’ Chief Investment Strategist, highlighted the current market’s favorable positioning compared to previous attempts to surpass the highs of September 2024. He emphasized that the market now benefits from anticipated earnings growth exceeding 15% in FY27, potentially attracting FIIs back into Indian markets. He advised investors to focus on large caps and quality midcaps due to the prevailing overvaluation of small caps.
Anand James, Geojit’s Chief Market Strategist, expressed optimism despite Friday’s profit-taking, suggesting that the market’s momentum remains intact. He pointed out that maintaining levels above 26,028–25,980 is crucial for sustaining the positive trend and potentially reaching 26,550. However, a breach below 25,826 could indicate a weakening momentum, although a significant correction is unlikely.
While IT stocks initiated the market’s current upturn, future catalysts are expected to stem from earnings visibility and the resolution of the long-pending trade deal between Washington and New Delhi, according to market analysts.