Indian stock markets saw a remarkable rise on Monday as the Sensex jumped by 1,100 points, and Nifty surged by 24,490 points in intraday trade. By reclaiming the 80,000 mark, the Sensex ended at 80,539, while the Nifty reached an intraday high of 24,490, offering a fresh wave of confidence to market participants. This upward movement marked a significant shift after a challenging week for investors, largely driven by strong second-quarter results from major banks and optimism due to stable oil prices.
Reasons behind the surge
Positive Q2 results and easing oil prices push Sensex and Nifty
Sensex and Nifty both rallied as second-quarter earnings reports from leading banks such as ICICI Bank exceeded expectations, bringing in significant investment interest. ICICI Bank, in particular, contributed 270 points to the Sensex, rising 3.68% intraday after achieving a target price upgrade from various brokerage firms. Expectations of stable oil prices further bolstered the market surge, following Israel’s recent strike that avoided Tehran’s oil and nuclear facilities, easing concerns of disruption in energy supply.
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, shared his view, noting, “This positive trend in Sensex and Nifty reflects investors’ shift toward quality as banking sector valuations remain attractive. Given the Q2 performance, we anticipate sustained optimism.”
Sectoral gains push
Across the board, sectoral indices displayed strength, with Nifty PSU Bank leading the rally, up by 3.06% in intraday trading. Nifty Metal and Nifty Media also performed well, rising 2.36% and 1.46%, respectively. Leading stocks contributing to Sensex’s upward movement included Reliance Industries, M&M, and SBI, which collectively added over 200 points to the index. Among PSU banks, SBI, PNB, and Bank of Baroda registered gains of 2-6% each, adding to the Sensex momentum.
According to technical analysts, Sensex and Nifty may continue to trade at higher levels as long as oil prices remain stable and positive Q2 results support market sentiment. Analysts identified the August low of 23,894 as a key support for Nifty, while noting that 24,350 could act as a resistance point in the near term. “Today’s intraday rise in Sensex and Nifty reflects bullish sentiment, but we may see resistance as the market tests higher levels,” commented one analyst.
Global Markets gains
The gains in Sensex and Nifty intraday also mirrored a positive trend across Asian markets, which saw a similar upturn. Japan’s Nikkei 225 rose by 1.97% based on election results favoring opposition parties, while South Korea’s Kospi and Australia’s S&P/ASX 200 showed steady gains. In the US, the Nasdaq Composite reached an all-time high on Friday, while the S&P 500 and Dow Jones Industrial Average displayed mixed movements.
