Mumbai — The domestic equity markets closed higher on Monday, ending a three-day losing streak, supported by strong buying in IT, automobile, and select banking stocks. Investor optimism was further boosted by expectations of a potential resolution to the U.S. government shutdown.
The Sensex gained 319 points, or 0.38 per cent, to close at 83,535.35. The 30-share index opened flat at 83,198.20, compared to its previous close of 83,216.28, but later rallied nearly 500 points to hit an intraday high of 83,754.49 on the back of robust buying in tech and auto majors.
The Nifty 50 settled at 25,574.35, up 82 points, or 0.32 per cent.
“The potential resolution of the U.S. government shutdown, coupled with renewed FII buying driven by a strong Q2 earnings season, lifted market sentiment. The rise in U.S. 10-year Treasury yields reflects improved risk appetite toward equities as the federal government reopens,” said Vinod Nair, Head of Research at Geojit Financial Services.
He added that domestic macroeconomic strength continues to support upward revisions in earnings estimates for the second half of FY26.
Among Sensex constituents, Infosys, HCL Tech, Asian Paints, Tata Motors Passenger Vehicles, TCS, Bharti Airtel, Titan, L&T, Tech Mahindra, and Maruti Suzuki were the top gainers. Meanwhile, Trent, NTPC, PowerGrid, Ultratech Cement, Mahindra & Mahindra, and Axis Bank ended the session in the red.
Sectorally, most indices closed in positive territory on value buying. Nifty IT surged 570 points or 1.62 per cent, Nifty Auto gained 80 points or 0.30 per cent, Nifty Financial Services rose 66 points or 0.24 per cent, and Nifty Bank climbed 60 points or 0.10 per cent. Nifty FMCG was the only index to end lower.
The broader market also mirrored the uptrend, with Nifty Midcap 100 advancing 281 points (0.47 per cent), Nifty Smallcap 100 rising 62 points (0.35 per cent), and Nifty 100 gaining 86 points (0.33 per cent).
On the currency front, the rupee traded flat near 88.66. A weaker U.S. dollar index was balanced by continued FII outflows, leading to a subdued session for the currency.
“The RBI’s likely intervention near the 88.75–88.90 range capped further weakness, keeping the rupee within a narrow band. Traders now await key CPI data from both the U.S. and India this week, which will likely determine near-term direction. The rupee is expected to remain volatile within the 88.45–88.90 zone,” said Jateen Trivedi of LKP Securities.
With inputs from IANS