Indian equities continued their winning streak for a fourth straight session on Monday, with benchmark indices climbing to fresh highs as improving monsoon conditions, renewed foreign investor buying and easing global concerns boosted market sentiment. The rally added more than ₹2 lakh-crore to investors' wealth in a single trading session, reinforcing confidence ahead of the corporate earnings season.
The benchmark indices also benefited from relatively stable crude oil prices and expectations that earnings growth will strengthen in the second half of the financial year.
The Sensex gained 521 points (0.67 percent) to close at 78,285, while the Nifty 50 rose 160 points (0.66 percent) to finish at 24,430, comfortably above the 24,400 mark.
Broader markets also ended in positive territory.
Nifty Midcap 100 gained 0.45 percent
Nifty Smallcap 100 advanced 0.75 percent
With Monday's gains, the Sensex has rallied more than 1,800 points over the past four trading sessions, while the Nifty has climbed about 565 points, a gain of roughly 2.4 percent.
The rally lifted the total market capitalisation of BSE-listed companies to ₹482 lakh-crore, up from ₹480 lakh-crore in the previous session.
Over the four-session rally, investors have added nearly ₹8 lakh-crore in wealth, with the BSE's total market value rising from ₹474 lakh-crore at the end of June.
Several factors combined to improve investor confidence.
Revival of the southwest monsoon, easing concerns over the rural economy
Return of foreign institutional investors as net buyers in July
Stable Brent crude prices around $72 a barrel
Reduced geopolitical tensions
Expectations that the US Federal Reserve may avoid aggressive interest rate increases after softer US economic data
Hopes of stronger corporate earnings in the second half of the financial year
According to NSDL data, foreign portfolio investors bought Indian equities worth ₹708 crore until July 3, indicating improving overseas sentiment towards Indian markets.
Most sectoral indices ended higher, with buying concentrated in domestic demand-driven sectors.
Top gainers
Realty: +1.81 percent
Consumer Durables: +1.48 percent
Auto: +1.36 percent
Oil & Gas: +1.12 percent
Metal: +0.98 percent
Bank: +0.61 percent
Financial Services: +0.44 percent
Sectors under pressure
Media: -0.95 percent
PSU Bank: -0.88 percent
IT: -0.59 percent
Top gainers
HDFC Bank
Hindalco
ONGC
Top losers
Kotak Mahindra Bank
Max Healthcare Institute
TCS
Despite the strength in equities, the rupee weakened by 20 paise to close at ₹95.38 against the US dollar.
Market sentiment remains constructive as easing global risks, lower crude oil prices, improving foreign fund flows and expectations of stronger corporate earnings continue to support Indian equities. Investors will now turn their attention to the upcoming June-quarter earnings season, which is expected to determine whether the market's current momentum can be sustained.
