Indian benchmark indices extended their gains for the fourth straight session on Monday, with strong buying in banking, information technology and defence stocks helping the market overcome mixed global cues. The BSE Sensex climbed 446.93 points, or 0.54%, to close at 83,699.25, while the NSE Nifty 50 advanced 140.20 points, or 0.55%, to settle at 25,549.00. Positive corporate earnings, sustained domestic buying and easing concerns over global geopolitical tensions supported investor sentiment throughout the trading session.
The rally was led by heavyweight banking stocks, which continued to attract strong buying interest after a series of encouraging quarterly earnings announcements. Investors remained optimistic about the sector’s healthy loan growth, improving profitability and stable asset quality, making financial stocks the biggest contributors to the benchmark indices’ gains.
Among the top performers on the Nifty 50, Bharat Electronics Ltd (BEL) emerged as the biggest gainer, rising over 3% after continued investor optimism around defence spending and strong order inflows. HDFC Bank also gained more than 2%, providing significant support to both the Sensex and Nifty. Other major gainers included Shriram Finance, ICICI Bank and Tech Mahindra, which benefited from buying across financial and technology stocks.
On the losing side, Trent was the biggest laggard, declining nearly 2% amid profit booking after recent gains. Tata Consumer Products, Hero MotoCorp, Nestle India and Asian Paints also ended lower, limiting the broader market’s advance as investors rotated out of select consumer-facing stocks.
The banking sector remained the star performer throughout the day. Shares of HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank traded firmly higher, reflecting continued confidence in India’s financial sector. Analysts said the latest earnings season has reinforced expectations that banks will continue to benefit from healthy credit demand, improving deposit growth and disciplined risk management.
Information technology stocks also supported the market rally. Tech Mahindra, Infosys, TCS and HCLTech witnessed steady buying as investors accumulated quality technology names ahead of key global economic events. Optimism surrounding artificial intelligence, cloud computing and enterprise digital transformation continued to support sentiment towards the IT sector.
Defence stocks remained in focus following strong government spending expectations and a healthy order pipeline. BEL’s sharp rise reflected investor confidence in India’s growing defence manufacturing ecosystem and the company’s strong execution capabilities.
Broader markets also participated in the rally. The Nifty Midcap 100 and Nifty Smallcap 100 indices closed in positive territory, indicating that buying interest was spread across market segments rather than being limited to large-cap stocks. Healthy market breadth suggested that investors remained comfortable adding exposure despite benchmark indices trading near record levels.
Sectorally, Nifty Bank, Financial Services, IT, Capital Goods and Defence-related stocks outperformed. Realty shares also witnessed selective buying, while FMCG counters traded mixed as investors booked profits in some high-valued consumer stocks.
Market sentiment remained supported by continued domestic institutional buying. Foreign institutional investors also showed signs of returning after a period of cautious participation, helping improve liquidity in the broader market. Analysts believe India’s strong domestic inflows continue to provide resilience against global market volatility.
Corporate earnings remained another major driver of investor activity. Stocks reporting healthy quarterly numbers continued to outperform, while companies delivering weaker-than-expected results witnessed selective selling. Investors remained focused on management commentary, future growth guidance and margin trends as the earnings season entered a crucial phase.
Global cues were mixed during the session. Asian markets traded cautiously as investors monitored developments surrounding global interest rates, trade conditions and geopolitical events. European markets opened on a subdued note, although easing crude oil prices helped improve sentiment across emerging markets, including India.
Lower crude oil prices are viewed positively for the Indian economy as they help reduce imported inflation and support macroeconomic stability. Stable oil prices also ease pressure on the current account deficit and improve the outlook for sectors dependent on fuel costs.
The Indian rupee traded within a narrow range against the US dollar, supported by improving foreign fund flows and stable domestic market conditions. Currency stability further strengthened investor confidence in Indian equities.
Market experts said India’s economic fundamentals continue to remain favourable. Strong GST collections, resilient manufacturing activity, healthy services sector growth and sustained government infrastructure spending continue to support the country’s long-term growth story. These factors have encouraged both domestic and overseas investors to maintain exposure to Indian equities despite ongoing global uncertainties.
Going forward, market participants will closely monitor quarterly earnings from several blue-chip companies, foreign institutional investment flows, crude oil prices and global central bank policy decisions for further direction. Domestic macroeconomic data and global developments will also influence near-term market sentiment.