Mumbai’s financial landscape witnessed a remarkable resurgence at the start of the week, with the benchmark BSE Sensex surging by 941 points, as investors engaged heavily in bank and infra shares, buoyed by a rally in global stock markets.
The striking recovery was visible as the 30-share BSE Sensex escalated by 941.12 points, achieving a growth rate of 1.28 per cent to close at 74,671.28. The trading day also saw the Sensex reach a hiked peak of 990.99 points or 1.34 per cent, briefly touching 74,721.15. Correspondingly, the broader NSE Nifty rose by 223.45 points, or 1 per cent, to end the day firmly above the 22,600 mark, at 22,643.40.
The rally was largely driven by the banking sector, with ICICI Bank soaring nearly 5 per cent after it announced a substantial growth in its March quarter consolidated net profit, which went up by 18.5 per cent to Rs 11,672 crore, thanks in part to reduced provisions. This positive momentum rippled through to other banking giants, including IndusInd Bank, State Bank of India, Axis Bank, Kotak Mahindra Bank, and HDFC Bank, all of which posted notable gains.
Non-banking heavyweights, such as UltraTech Cement, Tata Consultancy Services, and Bajaj Finance, also contributed to the market’s optimistic performance. Conversely, HCL Technologies witnessed a fall close to 6 per cent after its quarterly report showed a stagnant year-on-year net profit growth of Rs 3,986 crore.
Other companies that didn’t share in the day’s upward trajectory included ITC, Wipro, and Bajaj Finserv, all ending the day as laggards amidst the general market cheer.
The positive performance stretched beyond Indian shores, as key Asian markets like Seoul, Shanghai, and Hong Kong all concluded the day in the green, reflecting a broader global confidence. Meanwhile, European markets showcased mixed results, and Wall Street closed off the previous week with gains, adding to the supportive international backdrop.
Vinod Nair, Head of Research at Geojit Financial Services, commented on the rebound, attributing it to several factors including encouraging tech earnings in the US and a dip in the US 10-year treasury yield. Nair further highlighted that the Bank Nifty’s robust performance in the fourth quarter, along with easing tensions in the Middle East and stable corporate earnings at home, have converged to set a positive tone for the market’s outlook.
Adding to the broader economic context, the global oil benchmark Brent crude saw a slight dip of 0.51 per cent to USD 89.04 a barrel. This modest drop in oil prices often bodes well for the Indian economy, where heavy reliance on oil imports can significantly impact trade deficits.
However, it wasn’t all zeal in the market as Foreign Institutional Investors (FIIs) sold off equities amounting to Rs 3,408.88 crore on the preceding Friday, as per exchange data. This outflow is a critical indicator as FIIs have played a sizable role in Indian equity markets, and their investment patterns are keenly watched by market participants.
The robust performance on Monday painted a stark contrast to the end of the previous week, where the BSE Sensex had taken a plunge of 609.28 points or 0.82 per cent to settle at 73,730.16. Similarly, the NSE Nifty had receded by 150.40 points or 0.67 per cent to 22,419.95.
This resurgence is seen as a testament to the resilience of the Indian markets, which continue to display volatility yet trend upwards in the longer term, fueled by solid economic fundamentals and optimistic investor sentiment. With a mixture of domestic vigor and international windfalls, Indian stocks are navigating through a complex financial landscape, yet manage to assert their growth trajectory amidst broader global shifts.
