Market Rebounds as Bank Stocks Lead; Nifty, Sensex Close Higher
The Indian stock market rebounded on Monday, snapping a three-session losing streak, as bank stocks led the gains.
The NSE Nifty 50 ended 122.3 points or 0.49% higher at 25,090.7, while the BSE Sensex gained 442.61 points or 0.54% to close at 82,200.34.
Bank Stocks Drive the Rally
Shares of ICICI Bank Ltd. and HDFC Bank Ltd. were among the top gainers in the Nifty, as investors shrugged off concerns over the global economy and focused on the domestic market’s growth prospects.
Technically, the market took support near 24,900 and bounced back sharply, with the 50-day simple moving average (SMA) acting as a key level of support, according to Shrikant Chouhan, head of equity research at Kotak Securities.
"A reversal intraday formation and a bullish candle near the 50-day SMA indicate that a pullback formation is likely to continue in the near future," he said.
Top Gainers and Losers
Shares of Eternal Ltd., ICICI Bank Ltd., HDFC Bank Ltd., HDFC Life, and Mahindra & Mahindra Ltd. were among the top gainers in the Nifty, while Reliance Industries Ltd., Wipro Ltd., IndusInd Bank Ltd., Eicher Motors, and HCL Technologies Ltd. were among the biggest laggards.
Sectoral Performance
In terms of points contribution, HDFC Bank, ICICI Bank, and Eternal led the gains in the Nifty, while Reliance Industries weighed on the index the most.
On the NSE, 10 out of the 15 sectors ended in the green, with the Nifty Finance gaining and Oil & Gas dropping the most.
Broad Market Indices
The broader market indices outperformed the benchmarks, as the BSE MidCap jumped 0.55% and the BSE SmallCap declined 0.01%.
Market Breadth
The market breadth was skewed in favour of the sellers as 2,188 stocks declined, 1,959 advanced, and 180 remained unchanged on the BSE.
Conclusion
The Indian stock market rebounded on Monday, driven by bank stocks and a rebound in the broader market indices. While the global economy remains a concern, the domestic market’s growth prospects and corporate earnings are likely to continue driving the rally.
