Follow WOWNEWS 24x7 on:
India’s benchmark equity index, the Nifty 50, staged a modest yet meaningful rally on Monday, provisionally ending 0.81% higher, as investors shrugged off global uncertainties and turned optimistic on domestic growth prospects. The index closed at 24,500.91, up nearly 200 points from the previous session, marking a strong start to the month and signaling renewed bullish sentiment across sectors.
This uptick comes after a volatile August, where the index oscillated between gains and losses amid concerns over U.S. tariffs, foreign fund outflows, and mixed corporate earnings. Monday’s rally was driven by gains in banking, FMCG, and auto stocks, with heavyweight counters like HDFC Bank, ITC, and Maruti Suzuki leading the charge.
Sector Snapshot: Who Led the Rally?
The Nifty’s upward move was broad-based, with 24 of the 50 constituents ending in the green. Key sectoral performers included:
Banking: HDFC Bank and ICICI Bank posted modest gains, supported by stable credit growth and easing bond yields.
FMCG: ITC and Hindustan Unilever saw buying interest as investors rotated into defensive plays amid global uncertainty.
Auto: Maruti Suzuki and Eicher Motors surged on expectations of strong festive season demand and improving rural sentiment.
The Nifty Bank index also contributed to the rally, although gains were capped by profit booking in mid-tier lenders.
Technical Take: Bullish Signals Emerge
From a technical standpoint, the Nifty 50 has reclaimed key support levels and is now trading above its 20-day and 50-day moving averages, suggesting a short-term bullish bias. Analysts note that the index has formed a higher low pattern, which typically precedes a breakout.
Rupak De, Senior Technical Analyst at LKP Securities, commented:
“The Nifty’s close above 24,500 is encouraging. If it sustains above this level, we could see a move toward 24,800 in the coming sessions.”
Momentum indicators like the Relative Strength Index (RSI) have also turned positive, indicating that buying interest is returning after weeks of consolidation.
Global Cues: Mixed but Manageable
Global markets offered a mixed backdrop, with U.S. futures trading flat and Asian indices showing mild gains. Investors remain cautious ahead of key macroeconomic data releases, including U.S. non-farm payrolls and China’s PMI figures.
Despite the uncertainty, India’s relative macroeconomic stability—buoyed by strong GDP growth and controlled inflation—has made it an attractive destination for foreign investors. The rupee’s stability at 88.1950 per dollar also helped calm nerves in currency-sensitive sectors.
Domestic Drivers: Growth Optimism Builds
India’s Q1 FY26 GDP growth came in at 7.8%, beating expectations and reinforcing confidence in the country’s economic trajectory. Government spending on infrastructure, rising consumer demand, and a resilient services sector have all contributed to the upbeat outlook.
Additionally, the upcoming festive season is expected to boost retail, auto, and real estate sectors, further supporting market sentiment.
Expert Views
Ajit Mishra, SVP at Religare Broking, noted:
“The market is showing signs of strength, but global headwinds remain. Investors should stay selective and focus on quality stocks with strong earnings visibility.”
Vinod Nair, Head of Research at Geojit Financial Services, added:
“India’s macro fundamentals are intact. The Nifty’s performance today reflects growing confidence in domestic resilience.”
What’s Next?
With the Nifty 50 provisionally closing 0.81% higher, all eyes are now on upcoming data releases and central bank commentary. Traders will be watching for cues from the Reserve Bank of India’s monetary policy stance, especially in light of global rate hikes.
If the index sustains above 24,500, it could pave the way for a retest of the 24,800–25,000 zone, which has acted as a resistance in recent months. However, any escalation in geopolitical tensions or unexpected macro shocks could trigger volatility.
Sources: The Economic Times, SensexIndia, Trading Economics
Follow WOWNEWS 24x7 on:
Copyright 2024 WOWNEWS 24x7. All rights reserved. The WOWNEWS 24x7 is not responsible for the content of external sites. Read about our approach to external linking.
Powered By Just Imagine
