Benchmark stock market indices showed significant gains on Monday, with the Sensex surging by over 600 points and the Nifty50 surpassing the 25,000 level. The market started flat but quickly picked up momentum, driven by strong performances in the banking, IT, and healthcare sectors, fueled by solid corporate results and consistent economic growth.
Private banks attracted attention following reports of robust loan growth over the weekend. Kotak Mahindra Bank saw a 2.44% increase after a 15% surge in loan disbursals during the September quarter, while HDFC Bank also rose by over 1%. Bajaj Finance surged by 3% after reporting a 24% year-on-year growth in assets under management for the period of July to September.
Major players like TCS, Axis Bank, and HCLTech contributed to the rally, signaling broad-based strength across various sectors. Healthcare stocks benefited from the government’s revision of CGHS rates, with companies like Apollo Hospitals, Manipal Healthcare, and Narayana Health witnessing gains as investors anticipated higher revenues.
The IT sector maintained its positive momentum, with the Nifty IT index rising by 1.51%, marking the third consecutive day of sectoral gains. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted a blend of optimism and caution in the market. He mentioned that positive sentiments from growth-stimulating monetary policies were offset by ongoing FII selling, but could be sustained by favorable news on growth and corporate earnings for the next fiscal year.
Vijayakumar anticipates strong growth and corporate earnings growth of more than 15% in the coming year. He highlighted the influx of fresh investments into domestic consumption themes like automobiles, banking, financials, telecom, aviation, metals, cement, and digital platforms, indicating a trend likely to continue.
Investors are also monitoring trade tensions between the US and India closely. Vijayakumar suggested that a trade deal could trigger a market rally, emphasizing the importance of developments in this area. The current market surge reflects robust corporate performances, domestic consumption-driven investments, and cautious optimism surrounding trade developments, underscoring the impact of positive news in turbulent times.