After a turbulent two-day slump, Indian equity markets staged a recovery on Monday, buoyed by positive cues from major Asian indices. The BSE Sensex rebounded 288.79 points to 81,407.39, while the NSE Nifty advanced 98.9 points to 24,817.50 in early trading. Gains were led by blue-chip firms such as Power Grid, TCS, and UltraTech Cement, even as some heavyweight stocks like Tata Motors and Axis Bank remained under pressure. A moderated risk outlook around the Strait of Hormuz and easing oil prices helped stabilize investor sentiment, despite persistent foreign fund outflows and weak cues from Wall Street.
Indian Equities Bounce Back Following Global Rally
Indian stock markets saw renewed buying interest on Monday following a sharp decline in the previous two sessions. The BSE Sensex gained 288.79 points, opening at 81,407.39, while the Nifty 50 rose 98.9 points to touch 24,817.50. The rebound came as Asian peers posted strong performances, with South Korea’s Kospi, Japan’s Nikkei 225, and Shanghai’s SSE Composite index trading in the green. The Hang Seng in Hong Kong, however, remained an outlier, underperforming its regional counterparts.
Market analysts attributed the domestic upswing to global momentum coupled with a perception that geopolitical risks, while elevated, remain contained for now.
Sector Leaders and Laggards
Among the 30 constituents of the BSE Sensex, several heavyweights recorded notable gains. Power Grid Corporation led the charge, followed by UltraTech Cement, Bharti Airtel, Larsen & Toubro, Asian Paints, NTPC, Tata Consultancy Services (TCS), and Infosys—all contributing positively to index movement.
Conversely, a few stocks dragged on the benchmark. Tata Motors, Axis Bank, Adani Ports, and Kotak Mahindra Bank were among the primary laggards, reflecting mixed sentiment in the broader market spectrum.
This divergence highlights a sectoral rotation underway, with investors opting for relatively defensive and infrastructure-related counters amid lingering global uncertainties.
International Backdrop and Oil Market Dynamics
Although U.S. markets closed lower on Friday, the sentiment did not significantly spill over to Asian or Indian markets. One key stabilizing factor was the global crude oil outlook. Brent crude rose modestly by 0.73% to USD 74.77 per barrel, a level considered manageable for energy-importing economies like India.
Geopolitical watchers continue to monitor tensions in the Middle East, particularly around the Strait of Hormuz—a critical artery for global oil transit. However, as VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, observed, “The probability of Iran closing the Strait of Hormuz remains low for now. The market appears to have priced in the geopolitical risks without yielding to panic.”
Institutional Activity and Recent Market Performance
Despite the Monday rebound, the domestic market remains under pressure from sustained selling by Foreign Institutional Investors (FIIs). On Friday alone, FIIs net sold equities worth Rs. 1,263.52 crore, continuing a trend of capital outflows amid global volatility and dollar strength.
The benchmark indices had taken a sharp hit in the previous two sessions. The Sensex lost 573.38 points on Friday to close at 81,118.60, while the Nifty slipped 169.60 points to settle at 24,718.60. Over the two-day decline, the Sensex shed a cumulative 1,396.54 points (1.69%), and the Nifty fell 422.8 points (1.68%).
These figures underscore the market’s recent vulnerability, shaped by both external risks and domestic positioning shifts by institutional players.
Outlook: Cautious Optimism with Global Watchpoints
While Monday’s rebound reflects a degree of resilience in Indian equities, market sentiment remains fragile. Continued monitoring of oil prices, U.S. economic data, and geopolitical developments will be crucial in the coming days.
Investors are advised to tread carefully, especially in light of sectoral volatility and external fund movements. However, strong domestic fundamentals, coupled with India’s long-term growth story, continue to underpin broader optimism in the equity market.
Comments