Indian benchmark indices staged a strong recovery on Monday, where the Sensex gained 472.77 points, or 0.66%, to close at 72,382.47, while the Nifty 50 advanced 133.80 points, or 0.60%, to settle at 22,555.75. The Sensex had climbed more than 700 points during the session, while the Nifty moved above the 22,500 mark before giving up some gains.
The recovery offered some relief after a difficult stretch for Indian equities. Both benchmarks had ended the previous week with their eighth consecutive weekly decline, marking their longest losing run in 25 years. Monday’s gains suggested that investors were willing to return to beaten-down stocks, although concerns around foreign fund outflows, elevated crude prices and global interest rates continued to keep sentiment cautious.
ITC was the standout gainer, rising around 5% and providing strong support to the Nifty. BSE gained more than 4%, while Tata Motors Passenger Vehicles advanced over 3%. Shriram Finance and Bajaj Finance were among the other notable gainers, rising around 2.8% and 2.3%, respectively.
Several major companies also contributed to the market’s recovery. Eternal, Bharti Airtel, Adani Ports, ICICI Bank, Reliance Industries and Larsen & Toubro were among the stocks that supported the benchmarks.
The broader market also participated in the rally. The Nifty Midcap 100 gained around 0.67%, reflecting buying interest beyond the large-cap segment. The recovery across several sectors suggested that Monday’s gains were not limited to a handful of heavyweight stocks.
The top losers, however, showed that the recovery remained uneven. HCL Technologies fell around 3.3%, emerging as the weakest performer among Nifty 50 stocks. HDFC Bank declined about 2.3%, while Asian Paints, Hero MotoCorp and Apollo Hospitals also ended lower. Infosys was another notable laggard.
HDFC Bank’s weakness stood out because of the stock’s significant weight in the benchmark. The private-sector lender initially showed strength but reversed course later in the session, eventually ending sharply lower. The movement highlighted the volatility surrounding large financial stocks.
Global cues provided an important lift to Indian markets. Asian equities traded higher as investors assessed expectations around US monetary policy following weaker-than-expected employment data. Softer labour market conditions reduced some pressure on the US Federal Reserve to maintain an aggressive interest-rate stance.
Crude oil prices also eased, offering some relief to oil-importing economies such as India. However, crude remained elevated, keeping concerns over inflation, the current account deficit and the country’s import bill alive.
Financial stocks also attracted buying interest after several lenders reported healthy business updates for the September quarter. Punjab National Bank gained after reporting strong growth in global advances, while Bank of Baroda also advanced following an increase in quarterly advances. Bajaj Finance gained after reporting growth in new loans booked during the quarter.
Sectoral performance was largely positive. FMCG, consumer durables, media, infrastructure, oil and gas, PSU banks, telecom and realty stocks ended higher. The Nifty Bank and financial services indices also gained, while the PSU Bank index recorded a stronger rise. Pharma was among the sectors that remained under pressure.
Despite Monday’s rebound, investors remain cautious about the sustainability of the recovery. Foreign institutional investors have continued to sell Indian equities, while domestic institutional investors have helped absorb some of the selling pressure.
The rupee also remained under pressure, while elevated US Treasury yields continued to influence global risk sentiment. Gold prices remained firm as investors balanced concerns over inflation, geopolitical uncertainty and interest-rate expectations.
Monday’s rally therefore provides a much-needed pause after weeks of selling, but it does not yet signal a decisive change in the broader market trend. The Sensex and Nifty remain significantly below their recent highs, leaving investors focused on whether buying interest can continue in the coming sessions.
The next few trading days will be important as investors track corporate earnings, FII flows, crude oil prices, the rupee and global central-bank signals. A sustained improvement in these factors could help the market build on Monday’s gains.
The session has given investors some breathing room after a prolonged decline. Whether it marks the beginning of a broader recovery or simply a temporary rebound will depend on how markets respond to the economic and corporate signals emerging in the days ahead.