Investors reacted positively to firm trends in Asian markets, pushing benchmark indices higher in early trade on Monday. The Sensex surged 324.67 points to reach 74,657.25, while the Nifty advanced 98.45 points to touch 22,650.95. A strong buying spree in power and utility stocks fueled the rally, reinforcing investor confidence in the sector.
Power Grid, Bajaj Finance, Bajaj Finserv, NTPC, Hindustan Unilever, Adani Ports, Bharti Airtel, Nestle India, HCL Technologies, and Infosys gained momentum, contributing to the overall market strength. Meanwhile, stocks such as IndusInd Bank, Mahindra & Mahindra, Zomato, Titan, Larsen & Toubro, and Maruti Suzuki India faced some selling pressure.
Analysts pointed to global cues as a key driver of Monday’s market movement. Tokyo and Seoul markets traded higher, reflecting strong investor sentiment, while Shanghai and Hong Kong struggled to maintain gains. Wall Street had closed on a positive note on Friday, further supporting optimism in domestic equities.
The market’s volatility persisted amid concerns over US trade policies. Investors assessed the impact of fresh tariffs announced by President Trump, including a 25 percent duty on Canadian and Mexican imports and an additional 10 percent levy on Chinese goods. The administration later introduced exemptions and delays, which helped ease concerns to some extent.
Foreign institutional investors offloaded equities worth Rs 2,035.10 crore in the previous session, but domestic institutional investors stepped in with net purchases of Rs 2,320.36 crore, reflecting confidence in the local market’s resilience. The participation of DIIs helped offset selling pressure and contributed to the upward momentum seen in early trade.
Brent crude prices edged lower by 0.51 percent to settle at USD 70 a barrel, offering some relief to import-heavy industries. Energy costs remained a key concern for the Indian economy, and any further declines in oil prices could provide additional support to corporate earnings and inflation control measures.
The market’s recovery followed a mixed session on Friday when the Sensex snapped its two-day winning streak with a marginal decline of 7.51 points. The broader Nifty, however, managed to post a small gain of 7.80 points. Monday’s session signaled renewed optimism as investors returned to power and utility stocks, which showed strong potential for growth.
Market experts suggested that the current rally could sustain if global economic conditions remain stable and corporate earnings continue to meet expectations. Investors kept a close watch on upcoming economic data and policy announcements that could influence market sentiment in the coming days.
With Asian markets setting a positive tone, the focus remained on key sectors such as power, utilities, and technology, which continued to attract buying interest. The ongoing shifts in global trade policies and foreign investment patterns could play a crucial role in determining the market’s direction in the near future.
Investor sentiment remained upbeat as domestic economic indicators suggested resilience despite global uncertainties. Strong earnings reports from key sectors further fueled confidence, with analysts predicting a steady uptrend in the near term. The sustained interest in power and utility stocks indicated a shift towards defensive investments, reflecting cautious optimism among traders.
The rupee’s stability against the US dollar also provided some relief to investors. Despite global currency fluctuations, the local unit showed resilience, helping to keep foreign fund outflows in check. The central bank’s interventions and India’s strong forex reserves played a crucial role in maintaining currency stability, adding to the overall market confidence.
Mid-cap and small-cap stocks witnessed increased activity, with several stocks recording significant gains. Retail investors showed strong participation, capitalizing on the momentum in select sectors. The banking sector remained under focus, with mixed performance across private and public sector banks amid concerns over credit growth and regulatory changes.
Market strategists emphasized the importance of global trade developments in shaping short-term movements. Uncertainty over tariffs and geopolitical tensions continued to influence investor decisions, though domestic fundamentals remained robust. Institutional investors closely monitored policy changes and economic data releases, anticipating further cues for market direction.
As trading progressed, analysts advised caution despite the positive opening. Profit booking at higher levels could lead to intermittent dips, but strong support levels in key indices suggested sustained interest from buyers. The upcoming corporate earnings season and global central bank policy decisions would likely dictate market trends in the coming weeks.