EconomyMarkets
Sensex stretches rally to 1,030 points as Reliance drives a quarter of the gain
The BSE index touched 75,489.70 and the Nifty 23,330.70 in mid-morning trade, as metals led a broad rise, foreign buyers returned and every sector except pharma moved higher.
Key points
- The Sensex rose as much as 1,030 points to 75,489.70, and the Nifty hit 23,330.70.
- Reliance Industries, up nearly 7%, contributed about 400 points of the Sensex rise.
- The Nifty Metal index led sectors with a gain of about 1.5%; only pharma was lower.
Indian shares kept climbing through the morning on Monday, with the Sensex stretching its gain past 1,000 points as Reliance Industries, metal stocks and returning foreign money powered a broad rally.
The Sensex rose as much as 1,030 points, or 1.38%, to 75,489.70, its third straight day of gains, while the Nifty 50 climbed up to 278 points, or 1.20%, to 23,330.70. Both indices had opened higher at 9:15 am and added to the gains in the first hour. The Nifty Midcap 100 and Smallcap 100 each rose about 0.9%.
Reliance does the heavy lifting
Reliance Industries, up nearly 7% after better-than-expected quarterly results, accounted for about 400 points, or roughly a quarter, of the Sensex rise. Delhivery jumped about 9%, and Muthoot Finance recovered about 9% from a 52-week low.
All sectoral indices except pharma traded higher. The Nifty Metal index led with about 1.5%, and FMCG, PSU Bank and realty each gained more than 1%. The IT index rose about 0.8%.
The mood was helped by cheaper oil. Brent crude fell about 3% to around $110 a barrel, from a peak near $118 last week, as talks to end the US-Iran conflict continued. Foreign portfolio investors bought ₹6,300 crore of shares in the cash market last week after weeks of selling.
A turn in the market?
“There are clear indications of a turnaround in the Indian market assisted by positive external and domestic cues,” said V K Vijayakumar, chief investment strategist at Geojit Investments. “The weakening trend in AI trade is beneficial for India, which is widely regarded as a counter AI play.”
Shrikant Chouhan, head of equity research at Kotak Neo, advised buying on dips and booking profits on rallies, with support for the Nifty at 22,800 and then near 22,600.