Sensex surges 630 points, Nifty nears 24,600 on IT, FMCG, PSU bank rally

Markets rally sharply

Indian equity benchmarks extended their gains on Monday, with the Sensex surging 630 points and the Nifty closing in on the 24,600 level. The rally was broad-based, led by information technology, fast-moving consumer goods, and public sector bank stocks, as investor sentiment turned distinctly upbeat.

The BSE Sensex touched an intraday high of 800 points before settling around the 630-point gain, while the Nifty50 hovered near 24,590 in afternoon trade. Market breadth remained positive, with more than two stocks advancing for every decline on the exchanges.

IT and FMCG lead the charge

Software exporters were among the top gainers, tracking firm global cues and expectations of steady demand from key markets. FMCG majors also saw strong buying interest, with investors rotating into defensive sectors amid mixed signals from global markets.

PSU bank stocks outperformed, adding to the overall momentum. The rally was not confined to any single pocket — midcap and smallcap indices also traded higher, reflecting broad risk appetite among investors.

What is driving the upmove?

Traders attributed the surge to a combination of short covering ahead of monthly derivatives expiry and fresh buying by domestic institutional investors. Overseas cues were supportive, with Asian markets trading mixed but Indian indices shrugging off any early weakness.

Market participants also pointed to resilient domestic macros and expectations of continued policy support. However, analysts cautioned that volatility could pick up in the final hours of trade as participants adjust positions.

Key levels to watch

The Nifty has immediate resistance near the 24,600 mark, a level that has acted as a hurdle in recent sessions. On the downside, 24,400 is seen as a support zone, with traders keeping an eye on global cues for further direction.

Volume data suggested that institutional activity was skewed towards buying, though retail participation remained selective. The broader trend stays positive as long as the index holds above the 24,300-24,400 band on a closing basis.

What lies ahead

Investors will now watch for cues from global markets overnight and any fresh triggers on the macro front. The next few sessions could see the index attempt a decisive breakout above 24,600, with sectoral rotation likely to remain the dominant theme.