Sensex, Nifty Rally Nearly 4% In Two Sessions To Recoup November Losses: Market Wrap

The benchmark equity indices in India added nearly 4% in two consecutive sessions of gains to recoup their losses on a month-on-month basis. Both the NSE Nifty 50 and the BSE Sensex recorded on Monday the highest closing since Nov. 6.

Globally, the sentiment was uplifted after President-elect Donald Trump hinted at his intention to nominate Key Square Group founder Scott Bessent as the US Treasury secretary. The market also assessed brokerages' positive commentary after the National Democratic Alliance's win in the Maharashtra assembly elections.

The Nifty closed 314.65 points or 1.32% up at 24,221.90, while the Sensex ended 992.74 points or 1.25% higher at 80,109.85. During the day, both the Nifty and the Sensex rose nearly 2% to hit their highest levels since Nov. 7.

On a month-on-month basis, the Nifty and the Sensex had fallen in October after four consecutive months of gains. So far in November, the Nifty is trading 0.1% up and the Sensex is up around 1%.

Positive domestic cues propelled the Nifty to start the week on a robust note, but it remained rangebound for the rest of the day, according to Aditya Gaggar, director of Progressive Share Brokers. "The activity in the upcoming days will confirm the success or failure of the pattern breakout," he said.

"For the time being, the nearby support is placed at 23,950 (bullish gap), whereas the higher side seems to be capped at 24,350," Gaggar said.

The share prices of HDFC Bank Ltd., Larsen & Toubro Ltd., ICICI Bank Ltd., Reliance Industries Ltd. and State Bank of India contributed the most to the gains in the Nifty.

Infosys Ltd., JSW Steel Ltd., Maruti Suzuki India Ltd., Tech Mahindra Ltd. and Bajaj Auto Ltd. capped the upside the most.

All the 12 sectoral indices on the NSE rose, with the Nifty PSU Bank gaining the most by over 4%

The broader markets outperformed the benchmark indices as the BSE MidCap and the SmallCap indices ended 1.61% and 1.86% higher respectively.

On the BSE, 21 sectors ended higher, with the Industrials rising the most.

The market breadth was skewed in favour of the buyers as 2,687 stocks advanced, 1,366 declined and 161 remained unchanged on the BSE.