New Delhi: Domestic equity markets have reversed this year’s losses as both benchmark indices Sensex and Nifty extended their winning momentum to the sixth day in a row on Monday after facing heavy corrections recently.
Return of foreign investors after a prolonged period of selling, bargain hunting at lower levels, better valuations and the US Fed signalling two rate cuts in 2025 have boosted investor sentiment, experts said.
On Monday, the Sensex jumped 1,078.87 points or 1.40 per cent to settle at an over six-week high of 77,984.38. During the day, it zoomed 1,201.72 points or 1.56 per cent to 78,107.23.
The Nifty surged by 307.95 points or 1.32 per cent to 23,658.35. Intra-day, the benchmark zoomed 358.35 points or 1.53 per cent to 23,708.75.
The 30-share BSE benchmark Sensex has jumped 4,155.47 points or 5.62 per cent in six days since March 17. The NSE Nifty zoomed 1,261.15 points or 5.63 per cent during this period.
The Sensex had tanked 4,302.47 points or 5.55 per cent last month, while in January it declined 638.44 points or 0.81 per cent.
So far in March, the BSE benchmark surged 4,786.28 points or 6.53 per cent.
Tracking the optimism in equities, the market capitalisation of BSE-listed firms zoomed Rs 27,10,918.98 crore to Rs 4,18,29,351.91 crore ($4.87 trillion) during this period.
The BSE midcap gauge jumped 1.32 per cent and smallcap index climbed 1.17 per cent.
All BSE sectoral indices ended higher, with bankex rallying 2.53 per cent, utilities (2.42 per cent), power (2.31 per cent), industrials (2 per cent), financial services (1.97 per cent), capital goods (1.95 per cent) and realty (1.51 per cent).
Vinod Nair, Head of Research, Geojit Investments Limited, said, “The domestic market experienced a robust rally, spurred by value buying as valuations returned to long-term averages and early indications of earnings growth recovery emerged. Increased government spending and expected monetary easing are anticipated to boost optimism in rate-sensitive sectors such as banking, NBFCs, auto, consumer durables, and real estate, leading to potential outperformance.”
As many as 2,496 stocks advanced while 1,640 declined and 162 remained unchanged on the BSE.
“The Indian equity markets staged a strong recovery, erasing all losses from 2025, with the Nifty-50 and BSE Sensex rallying over 7.5% from their recent swing lows of 21,964.60 and 72,633.54, respectively.
“The market’s uptrend was largely driven by technical buying and value accumulation, particularly after the Nifty-50 breached the key psychological level of 22,000, rather than any significant fundamental shifts,” Vishnu Kant Upadhyay, AVP – Research & Advisory, Master Capital Services Ltd, said.
Additionally, FIIs turned net buyers, seizing attractive valuations and further accelerating the rally, he added.