Indian Markets Gain Momentum as Sensex and Nifty End Eight-Week Slide

The Indian stock market saw a notable recovery on Monday, with the Sensex and Nifty indices rising after enduring their longest losing streak in 25 years. The Sensex climbed approximately 473 points to close at 72,382, while the Nifty 50 index advanced around 134 points to finish at 22,556. Broader market indices also reflected positive momentum, as the Nifty Smallcap 100 and Nifty Midcap 100 indices increased by up to 0.7% during the session.

This upward movement provided some respite for investors following eight consecutive weeks of declines, a period marked by uncertainty and cautious sentiment. The rebound was influenced by a combination of factors, including softer-than-expected US employment data and a reduction in crude oil prices, which eased concerns over near-term interest rate hikes. Vinod Nair, Head of Research at Geojit Investments, explained that the market was grappling with a gap between economic growth fundamentals and actual market performance. Investors had been pricing in high crude oil prices, rising bond yields, and currency-related risks, but the recent developments gave traders a reason to reassess.

Looking ahead, attention is turning toward the Reserve Bank of India's upcoming policy decision and the earnings season, with markets already factoring in a 25-basis-point rate increase. Vinod Nair pointed out that while a market rebound appears likely, prevailing risk-averse attitudes may prompt some investors to book profits until a new catalyst emerges.

On the global front, US markets also showed strength on Monday. The S&P 500 index rose, and the Nasdaq Composite reached new all-time highs as major technology and growth stocks posted gains. Notably, Nvidia shares rose 1.1%, nearing their previous record levels. Other tech giants such as Meta Platforms, Microsoft, and Tesla each added over 1%. Seven of the eleven sectors in the S&P 500 traded higher, with communication services and utilities leading the way.

European markets experienced mixed results amid fiscal concerns in France, which pressured the euro currency to its lowest point in 17 months and dragged French stocks to six-month lows. Despite this, Europe's STOXX 600 index edged up slightly by 0.15%, indicating cautious optimism among investors.

Within India's domestic market, several stocks stood out for their trading activity. In terms of value, HDFC Bank led with a turnover of Rs 4,729 crore, followed by BSE at Rs 2,109 crore, ICICI Bank at Rs 1,745 crore, Reliance Industries at Rs 1,684 crore, and PB Fintech at Rs 1,296 crore. Volume leaders included Vodafone Idea with 46 crore shares traded, HDFC Bank with 6.61 crore shares, and Yes Bank with 6.11 crore shares changing hands.

Certain stocks attracted notable buying interest, including Physicswallah, SCI, Nuvama Wealth Management, Escorts Kubota, Netweb Technologies, Kalyan Jewellers, and RR Kabel. Several companies reached 52-week highs on the NSE, such as Sterlite Tech, LG Electronics, Cupid, and TD Power Systems. Conversely, stocks like Avenue Supermart, Prime Focus, Bandhan Bank, Krishna Institute of Medical Sciences, Welspun Corp, Thermax, and Privi Speciality Chemicals faced selling pressure. Some stocks hit 52-week lows, including Swan Energy, Max Financial, UPL, Godawari Power, Motherson Sumi Wiring India, IndiaMART, and IEX.

Market breadth on the NSE reflected a slightly bearish tone, with 1,844 out of 3,706 stocks declining, 1,745 advancing, and 117 remaining unchanged on Monday, October 5.

These developments come amid a backdrop of ongoing volatility in global markets, fluctuating commodity prices, and evolving monetary policy expectations. Investors continue to closely monitor central bank decisions, geopolitical factors, and corporate earnings reports as they navigate the current market environment.

Disclaimer: This article was authored by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or Investment Adviser. Neither Debaroti Adhikary nor their relatives hold financial interests in the companies mentioned as of the article's publication date. Any views or recommendations presented are attributed to the respective SEBI-registered analysts or brokerages and are reproduced with appropriate credit. Readers should conduct their own analysis before making investment decisions.