The Indian stock markets traded moderate gains to open the week on gaining terms. The major benchmark indices closed in the green on the back of favourable domestic factors. The BSE Sensex added 329.06 points i.e. 0.40%, closing at 81,635.91; while the NSE Nifty50 increased 97.65 points i.e. 0.39% to close just below the 25,000 mark at 24,967.75. This is a consistent extension of the recent upswing based on largely healthy corporate results and sentiment around economic reforms and strong consumption growth.
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Technology Stocks Drive Rally
Technology sector led the rally for the day with strong buying interest and topped the sectoral performance with Nifty IT gaining more than 2.3%. Top IT players such as Infosys, TCS, and HCL Technologies were among the leading gainers. Infosys stock gained 2.58% to ₹1,532.10, Tata Consultancy Services was up 2.83% to ₹3,140.60, and HCL Technologies surged 2.58% to close at ₹1,504.20. The positive tone in IT stocks indicates encouraging global demand prospects for digital transformation and outsourcing solutions, which are still lending support to sustainable top-line growth for these firms.
Mixed Bank and Other Sector Performance
The banking industry had a mixed day with the Nifty Bank index declining marginally by 0.02%, closing at 55,139.30 points. While major private sector banks such as HDFC Bank showed bullish momentum, others witnessed some profit booking on account of conservative sentiment due to growing global uncertainties. Meanwhile, sectoral indices like Auto and Consumer Durables registered modest advances on the back of continuous demand in these sectors. However, specific sectors such as FMCG and Capital Goods dipped marginally on account of profit booking fears.
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Rupee Weakened Against the Dollar
The Indian rupee closed down against the US dollar, following some pressure from foreign fund outflows and a firmer dollar internationally. Currency movement continues to be a point to watch for investors as it influences import costs and corporate profitability, particularly for those companies with foreign currency exposure.
Market Sentiment Driven by International and Domestic Factors
Market commentators are attributing today’s modest lift to domestic economic resilience and government reform efforts, such as GST 2.0 reforms expectations that may lift consumption and tax revenues. There are concerns, though, on the global trade front, including those related to recent US tariff proposals affecting Indian exports. The likely effect of those tariffs is a closely watched development, injecting a note of caution.
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‘Possible Fed Rate cut acts as the relief’
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, said that although U.S. Federal Reserve’s indication of a potential rate cut gave some relief in the global markets, the Indian market is dealing with the tariff threat and geopolitical risk as well, which may result in volatility in the future.
Overall, Indian markets are showing resilience with a bias towards sectors likely to gain from structural reforms and global demand themes, with caution on external headwinds and policy clarity in the near term from investors.
