Indian equity markets began the week on a strong note as benchmark indices rebounded sharply on Monday. The BSE Sensex surged 582.95 points, or 0.72 %, to close at 81,790.12, while the NSE Nifty 50 advanced 183.40 points, or 0.74 %, to 25,077.65, reclaiming the key 25,000-level after recent weakness.
The rally was driven primarily by banking and information technology stocks, which saw renewed buying interest following upbeat quarterly results and positive global cues. Broader market sentiment improved as investors reacted positively to the Reserve Bank of India’s (RBI) policy stance and easing crude oil prices.
Banking and IT Stocks Power Market Rebound
Heavyweights such as HDFC Bank, ICICI Bank, Infosys, and TCS were among the top gainers, helping lift overall market sentiment. Analysts said strong credit growth figures and steady corporate earnings have boosted confidence in the financial sector.
“The short-term structure remains positive with Nifty likely to retest 25,400 levels if momentum sustains,” said Rajesh Bhosale, Technical Analyst at Angel One, who listed BSE Ltd. and TCS among his top picks for the week.
The IT index also recorded healthy gains amid optimism over improving global demand conditions. Market experts believe that renewed foreign interest in Indian technology firms could lend additional support to the sector in the near term.
Support from Global Cues and RBI Policy
Globally, equity markets traded higher as investors turned optimistic about potential rate cuts by major central banks. The RBI’s decision to maintain a dovish tone during its latest policy meeting also eased concerns about domestic liquidity.
Lower crude oil prices provided further relief, helping reduce inflationary pressures and supporting investor confidence. The Indian rupee, which has been under pressure in recent weeks, also stabilized slightly, aiding market sentiment.
Foreign Investor Trends and Market Risks
Despite the rebound, market experts caution that volatility may persist amid global uncertainties. Data shows that Foreign Portfolio Investors (FPIs) have increased their short positions in Nifty futures, reflecting cautious sentiment due to concerns over U.S. tariff measures and a weaker rupee.
According to a report in The Times of India, FPIs offloaded nearly ₹2 lakh crore in Indian equities last week, marking one of the heaviest weekly outflows in recent months. Analysts warn that sustained outflows could cap near-term upside potential.
Among individual stocks, Tata Steel was a notable laggard, slipping nearly 1.9 % amid profit-booking in metal counters.
Outlook
With the Nifty 50 reclaiming the 25,000 mark and the Sensex nearing 82,000, analysts remain cautiously optimistic. Market participants will closely monitor FPI activity, currency trends, and global macroeconomic developments for further direction.
“Domestic fundamentals remain strong, but sustained foreign inflows will be critical for the next leg of the rally,” said a senior market strategist at a Mumbai-based brokerage.
If the current momentum holds, the Sensex could test 82,200 levels, while Nifty may move toward 25,400 in the near term, experts added.
