Sensex jumps 544 pts, Nifty reclaims 24,700 for fourth straight day of gains

Indian equity benchmarks extended their winning streak to a fourth straight session on Monday, with the Sensex jumping 544 points and the Nifty reclaiming the 24,700 level. The rally was broad-based, with buying across sectors lifting sentiment on Dalal Street.

The 30-share BSE Sensex closed at 81,234.56, up 544.12 points or 0.67 per cent. The NSE Nifty50 settled at 24,712.85, gaining 156.30 points or 0.64 per cent. Both indices hit intraday highs in the afternoon trade, though they pared some gains towards the close.

What drove the rally

Market participants pointed to a mix of global cues and domestic factors. Positive Asian markets, aided by hopes of a softer US Federal Reserve stance, provided a firm start. Buying in heavyweight financials, IT, and auto stocks added momentum.

Reliance Industries, HDFC Bank, and Infosys were among the top contributors to the Sensex gains. Midcap and smallcap indices also traded higher, reflecting improved risk appetite among investors.

Analysts said the market was consolidating after a volatile July, with investors now looking for fresh triggers. "The undertone is positive, but the market is not yet in a runaway rally," a Mumbai-based dealer said.

Sectoral performance

All major sectoral indices ended in the green. The Nifty Bank rose 0.7 per cent, led by private lenders. IT stocks gained 0.8 per cent, while auto and pharma advanced around half a per cent each. Metals and realty also saw buying interest.

Broader market indices outperformed the benchmarks, with the BSE Midcap index up 0.9 per cent and the Smallcap index up 1.1 per cent. Market breadth was positive, with about three stocks advancing for every two declining on the BSE.

Investor wealth and volumes

The rally added roughly Rs 2.3 lakh crore to investor wealth, with the total market capitalisation of BSE-listed firms crossing Rs 445 lakh crore. Cash market volumes on the NSE were slightly above the recent average, indicating active participation.

Foreign institutional investors were net buyers in the previous session, though provisional data for Monday was awaited. Domestic institutions have been consistent buyers in recent weeks, providing support to the market.

Rupee traded in a narrow range against the US dollar, closing around 83.60. Bond yields were steady, with the 10-year benchmark hovering near 6.95 per cent.

What to watch

Investors will now track cues from US inflation data due later this week, which could influence the Fed's rate path. On the domestic front, quarterly earnings from a few more large companies are scheduled, and any surprises could drive stock-specific moves.

Market participants also await the RBI's policy stance in the coming weeks. For now, the trend remains positive, but analysts advise caution given stretched valuations in some pockets. The next trading session will show if the momentum can be sustained beyond the 24,800 level on the Nifty.