The Sensex rebounded 555 points to 80,364 and Nifty climbed 198 points to 24,625 on Monday after three sessions of losses. Gains in auto, IT and consumer durables drove the rally as India’s Q1 GDP growth of 7.8% boosted investor sentiment. Analysts said strong macro data and hopes of GST rationalisation supported the relief rally.
Representational Image. File Pic
Benchmark BSE Sensex on Monday rebounded by nearly 555 points on value buying in IT, auto and consumer durables shares after three straight days of losses and strong macro data.
The 30-share Sensex jumped 554.84 points or 0.70 per cent to settle at 80,364.49 with 23 of its constituents ending higher and seven lower. The index opened with gains and later surged 597.19 points or 0.74 per cent to hit a high of 80,406.84.
The 50-share NSE Nifty spurted by 198.20 points or 0.81 per cent to close at 24,625.05.
Among Sensex firms, Mahindra & Mahindra, Tata Motors, Trent, Eternal, Asian Paints and Infosys were the major gainers.
However, Sun Pharma, ITC, Hindustan Unilever and Titan were among the laggards. India's economy grew by a stronger-than-expected 7.8 per cent in April-June, its fastest pace in five quarters, before US President Donald Trump imposed tariffs that now cloud the outlook, threatening key exports like textiles.
"India's Q1 GDP growth of 7.8%, exceeding projections, has reinforced investor confidence in the economy's resilience amid global uncertainties.
"Expectations of GST rationalisation at the upcoming council meeting continue to bolster sentiment, supporting discretionary consumption. This optimism is particularly benefiting sectors such as auto and consumer durables," Vinod Nair, Head of Research, Geojit Investments Limited, said.
"Markets began the week on a positive note, supported by upbeat Q1 GDP data. After an initial uptick, the Nifty traded in a range during the first half; however, renewed buying in select heavyweights pushed the index higher as the session progressed," Ajit Mishra ¿ SVP, Research, Religare Broking Ltd, said.
The BSE midcap gauge jumped 1.64 per cent and smallcap index climbed 1.49 per cent.
Auto surged the most by 2.68 per cent, followed by consumer durables (2.07 per cent), consumer discretionary (2 per cent), capital goods (1.93 per cent), power (1.80 per cent), metal (1.68 per cent), BSE Focused IT (1.65 per cent) and BSE IT (1.62 per cent).
As many as 2,796 stocks advanced while 1,391 declined and 193 remained unchanged on the BSE.
"The fall has been sharp in past three trading sessions and a breather was expected, and hence markets witnessed a relief rally. The bounce back was also due to strong Q1 GDP numbers and optimism ahead of the GST rejig meeting later this week.
"However, persistent FII selling coupled with a falling rupee has made investors jittery about equity markets near to medium prospects," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
In Asian markets, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled in positive territory while South Korea's Kospi and Japan's Nikkei 225 index ended lower.
Markets in Europe were trading mostly higher
The US markets ended lower on Friday. Global oil benchmark Brent crude climbed 0.92 per cent to USD 68.10 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,312.66 crore on Friday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 11,487.64 crore, according to exchange data.
On Friday, the Sensex dropped 270.92 points or 0.34 per cent to settle at 79,809.65. The Nifty edged lower by 74.05 points or 0.30 per cent to 24,426.85.
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