The Indian equity benchmarks ended higher on Monday, snapping a two-day losing run, as investors took heart from weak US jobs data that raised hopes of an interest rate cut by the Federal Reserve. A weaker dollar and firm global cues also supported sentiment.
The Sensex climbed 419 points, or 0.52 percent, to close at 81,018.72, while the Nifty 50 advanced 157 points, or 0.64 percent, to settle at 24,722.75. Gains were broad-based, with mid and small-cap stocks outperforming the benchmarks.
The BSE Midcap index rose 1.11 percent and the Smallcap index gained 0.76 percent.
Widespread buying lifted the total market capitalisation of BSE-listed firms to nearly ₹449 lakh crore, up from ₹444.5 lakh crore in the previous session—an increase of around ₹4.5 lakh crore in a single day.
The rally came amid growing speculation that the US Federal Reserve may lower interest rates in September after July's nonfarm payrolls data showed only 73,000 new jobs were added.
The dollar index fell over half a percent, while the rupee strengthened by a similar margin, adding to the positive undertone for domestic equities.
“A weakening US dollar, along with strong monthly auto sales and encouraging earnings from top automakers, helped renew investor interest,” said Vinod Nair of Geojit Financial Services. “While consumption-driven sectors are showing signs of a rebound, high US tariffs remain a lingering risk.”
In the Nifty 50 index, 43 stocks advanced. Hero MotoCorp surged 5.18 percent, followed by Tata Steel, which gained 4.08 percent. Adani Ports rose 3.56 percent.
On the other hand, Power Grid Corporation fell 1.12 percent, HDFC Bank declined 0.88 percent, and ONGC slipped 0.70 percent.
Among sectoral indices, Nifty Metal led the gains with a 2.48 percent rise. Nifty Realty jumped 1.77 percent, Auto 1.61 percent, IT 1.60 percent, Media 1.51 percent, Consumer Durables 1.37 percent, and PSU Bank 1.26 percent.
Nifty Bank ended flat, while Financial Services and FMCG dipped 0.06 percent and 0.10 percent, respectively.
Of the 4,307 stocks traded on the BSE, 2,295 advanced, 1,834 declined and 178 remained unchanged.
Vodafone Idea topped the volume charts on the NSE, with 41.32 crore shares changing hands, followed by Jayaswal Neco Industries (13.14 crore) and PC Jeweller (12.12 crore).
Twelve stocks on the BSE, including Hindustan Fluorocarbons, Neil Industries and Sarda Energy & Minerals, jumped over 15 percent.
As many as 124 stocks, including Bosch, HDFC Asset Management and TVS Motor Company, hit 52-week highs. Meanwhile, 125 stocks, including TCS, Ramkrishna Forgings and Indian Energy Exchange (IEX), hit 52-week lows.
According to Shrikant Chouhan of Kotak Securities, the market formed a bullish reversal pattern on intraday charts and a bullish candle on the daily chart, indicating the potential for a near-term rebound.
“In the short term, the market appears oversold, and a technical bounce is likely,” he said. “Support lies at 24,500–24,550, while resistance is expected around 24,850–24,950. A fall below 24,500 could trigger further selling.”
Rupak De of LKP Securities, said Nifty has reclaimed the 21EMA on the hourly chart, with RSI showing positive divergence.
“A bullish Harami pattern on the daily chart points to easing bearish pressure. If the trend sustains, the index could move towards 24,850–25,000, with immediate support at 24,650 and 24,500,” he said.
