The Indian stock markets began the new week on a stronger note, with the Sensex jumping more than 600 points and the Nifty 50 moving above 22,600 in early trade on Monday. The rebound brought some relief to investors after both benchmark indices recorded their eighth consecutive weekly decline, marking their longest losing streak in 25 years.
The recovery was led mainly by banking and financial stocks. Bajaj Finance emerged as one of the biggest gainers, rising more than 4% after reporting an 11% year-on-year increase in new loans during the September quarter. The strong business update helped revive interest in financial stocks after weeks of heavy selling.
HDFC Bank was another major market driver, with its shares gaining around 1-2% in early trading. The stock remained in focus after the lender appointed Anup Bagchi as its new Managing Director and CEO for a three-year term. Bagchi will take charge after Sashidhar Jagdishan’s tenure ends on October 26.
Public-sector banks also attracted strong buying interest. Punjab National Bank gained nearly 3% after reporting 14.8% growth in global advances during the September quarter. Bank of Baroda rose around 2.5% after reporting an 18% increase in quarterly advances. The numbers suggested continued credit demand despite pressure on the broader market.
The banking rally extended across the sector, with the Nifty PSU Bank index gaining more than 2%. State Bank of India, Axis Bank and other major financial stocks also supported the benchmark indices.
The IT sector also contributed to the recovery, although gains were selective. The Nifty IT index rose around 1% as investors responded positively to Accenture’s better-than-expected revenue growth and strong bookings. The update offered some reassurance about global technology spending ahead of the Indian IT industry’s quarterly earnings season.
However, the rally did not lift every heavyweight. Apollo Hospitals was among the notable Nifty losers, while Infosys and Max Healthcare also traded lower. Avenue Supermarts and TVS Motor were among other stocks facing selling pressure. The mixed performance showed that investors remained selective despite the broader improvement in sentiment.
Global developments provided an additional boost. A decline in crude oil prices eased concerns over India’s import bill and inflation, while weaker-than-expected US jobs data reduced expectations of an immediate aggressive interest-rate move by the US Federal Reserve. Asian markets also largely traded higher, creating a supportive backdrop for Indian equities.
The rebound comes after a difficult stretch for the domestic market. Rising crude prices, elevated global bond yields and sustained foreign institutional investor selling have weighed on Indian equities in recent weeks. The Nifty’s fall below its 200-day moving average had also heightened concerns about the possibility of further losses.
Monday’s recovery has brought the index back towards an important technical zone. Market analysts are closely watching the 22,600-22,800 range as the immediate resistance area, while 22,200 remains an important support level. A sustained move above 22,600 could strengthen the recovery, while a break below 22,200 could bring selling pressure back.
Investors are also watching the Reserve Bank of India’s monetary policy meeting, which began on Monday. The Monetary Policy Committee is scheduled to announce its decision on Wednesday. With crude oil prices, inflation and the rupee remaining key concerns, the RBI’s policy signals could influence market direction in the coming sessions.
The Indian rupee also showed a modest improvement, gaining five paise to around ₹96.20 against the US dollar in early trade. The move offered limited relief after the currency’s recent weakness.
Monday’s rally offered a much-needed pause after weeks of relentless selling for those planning to invest. Bajaj Finance, HDFC Bank and PNB were among the key gainers, while Apollo Hospitals, Infosys and Max Healthcare remained under pressure.
The bigger question now is whether the buying momentum can hold. With the RBI policy decision, quarterly earnings, crude oil prices and foreign fund flows all in focus, volatility is likely to remain elevated. For the moment, however, Dalal Street has regained some confidence after a prolonged period of pressure.