Benchmark stock market indices started the week on a strong note, providing a much-needed boost to investor sentiment on Dalal Street. The S&P BSE Sensex surged by 341.04 points, closing at 74,169.95, while the broader NSE Nifty50 climbed 111.55 points to end the session at 22,508.75.
Market experts attributed the positive momentum to strong buying interest in healthcare, financial, and auto stocks, which outweighed weaknesses in the FMCG and real estate sectors. This upward movement comes after a period of volatility driven by global economic uncertainty and mixed domestic cues.
Vinod Nair, Head of Research at Geojit Financial Services, commented on the day’s performance, saying, "The national market experienced a healthy trading session, primarily supported by strength in healthcare and financial sectors, which continue to exhibit resilience. However, lower participation from domestic investors — influenced by tariff-related uncertainties and global factors — could keep the market within a defined range in the near future."
Broader indices such as the BSE Midcap and Smallcap indexes mirrored the benchmark indices’ gains, rising around half a percent each. Pharma stocks, in particular, led the charge, buoyed by robust quarterly earnings and expectations of continued growth in exports.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, noted, "While strength in banking and financial majors continues to support market sentiment, the underperformance of other heavyweight sectors, such as FMCG and real estate, is limiting further upside. We advise investors to focus on stock selection based on relative strength during this period of consolidation and wait for more clarity on global economic developments."
Dr. Reddy's Laboratories (DRREDDY) topped the gainers' list, surging 3.93% on the back of strong earnings and positive analyst recommendations. SBI Life Insurance followed closely, rising 3.89%, driven by optimism around the insurance sector’s growth trajectory. Bajaj Finserv posted a healthy gain of 3.74%, reflecting strong performance in its lending and investment arms. Retail giant Trent advanced by 2.54%, continuing its upward trend, while Axis Bank added 2.36%, reflecting the banking sector’s overall strength.
On the flip side, IT heavyweight Wipro led the list of losers, falling 1.53% due to weak revenue guidance for the upcoming quarter. Bharat Petroleum Corporation Limited (BPCL) slid 1.13%, weighed down by fluctuating crude oil prices and concerns over refining margins. Hero MotoCorp (HEROMOTOCO) dropped 1.11% despite the auto sector's broader strength, while FMCG leaders ITC and Nestle India (NESTLEIND) fell 1.03% and 0.96%, respectively, as concerns over rising input costs and tepid rural demand persisted.
Looking forward, Nair emphasized that sustained earnings growth will be key to driving a more decisive upward trend. "Improving domestic economic indicators — including higher GST collections, stronger manufacturing output, and robust credit growth — suggest a potential recovery in the medium term. However, investors remain cautious ahead of the Federal Reserve (FED) and Bank of Japan (BOJ) meetings, where policymakers are expected to maintain current interest rates in light of persistent inflation risks and ongoing tariff uncertainties," he explained.
In the global context, Asian markets traded mostly higher, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng posting gains. European markets also opened positively, fueled by easing energy prices and hopes of a more dovish stance from central banks.
Domestic market participants will now turn their attention to corporate earnings reports, inflation data, and global monetary policy cues to gauge the market’s next direction. Analysts suggest that sectors showing resilience — like banking, pharmaceuticals, and autos — may continue to attract inflows, while companies struggling with high input costs or weak demand may remain under pressure.
Investors are advised to stay vigilant, diversify their portfolios, and focus on fundamentally strong companies, especially those with a proven track record of navigating volatile market conditions.
