Indian benchmark indices saw a strong late rally on Monday, breaking a two-day losing streak, driven by increased buying in banking stocks. The 30-share Sensex closed 0.79% higher at 83,277.15, while the broader Nifty ended up 0.83% at 25,682.75. Analysts noted that the Nifty’s technical outlook remains positive, with key support levels at 25,500–25,400.
Experts highlighted an immediate resistance range for the Nifty at 25,700–25,800, with a potential breakout signaling a move towards 25,900–26,000. The second half of the session saw a recovery led by banking and financial stocks, with companies like Power Grid, HDFC Bank, and Axis Bank among the top gainers. Conversely, Tech Mahindra, Maruti Suzuki, and Bajaj Finance faced declines.
Stocks of capital market-related firms faced pressure following revised norms by the Reserve Bank of India on capital market exposure. While companies like BSE and Angel One saw declines, the Nifty MidCap index rose by 0.48% and the Nifty SmallCap index inched up by 0.11%. Strong buying interest was observed in realty, PSU banks, private banks, and pharma stocks, while auto and metal sectors remained subdued.
Despite global uncertainties and regulatory changes, domestic buying in banking stocks supported the market’s recovery. The rupee traded mostly flat around 90.62, with market participants exercising caution. The currency found stability with a recovery in the secondary market post a weak opening. Analysts suggested a range-bound tone for the rupee, with resistance near 90.25 and support around 90.90.
