In a bullish start to the trading week, the Sensex vaulted over 325 points while the Nifty50 broke through the crucial 25,200 level for the first time since October. The rally, led by strong gains in auto stocks and heavyweight Reliance Industries, reflects growing investor appetite for risk assets amid improving market sentiment.
By midday, the Sensex had surged 0.39% to 82,716.89, while the Nifty50 climbed 0.43% to trade firmly above 25,200. The Nifty Bank index also participated in the upswing, rising 0.22% to approximately 56,756. “The breakthrough of key resistance levels suggests bulls are back in control,” noted a derivatives strategist at Kotak Securities.
Auto Stocks in the Driver’s Seat
Auto stocks emerged as the standout performers, with the Nifty Auto index racing ahead of the broader market. Maruti Suzuki, Tata Motors, and Mahindra & Mahindra all posted solid gains as analysts pointed to robust demand trends and easing supply chain pressures in the sector.
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Stock Movers: Tata Teleservices Surges, United Spirits Slumps
Among individual stocks, Tata Teleservices (Maharashtra) soared over 12% on heavy volumes, while Texmaco Rail & Engineering rallied nearly 5% after bagging a ₹44 crore order from Mumbai Railway Vikas Corporation Ltd. On the flip side, United Spirits tumbled more than 5% as an excise duty hike in Maharashtra clouded the company’s growth outlook.
Broader Markets Play Catch-Up
While the Sensex and Nifty powered ahead, the broader market indices initially lagged behind. However, as buying momentum accelerated through the session, the Nifty Midcap 100 and Nifty Smallcap 100 began to narrow the gap. “The breadth expansion is an encouraging sign for the durability of this rally,” commented the head of research at a leading domestic brokerage.
Global Cues Supportive
The positive start to the week also drew support from favorable global cues, with most Asian markets trading in the green. Receding fears about a U.S. recession and hopes for a resolution to the U.S.-China trade dispute kept risk appetite buoyant. “As long as global central banks maintain accommodative policies, equities will likely remain well bid,” said a fund manager at a global asset management firm.
As the trading day progresses, market participants will closely monitor institutional flows and global developments for further cues. With the Nifty50 conquering the 25,200 mark, bulls appear to have the upper hand for now. However, given stretched valuations and looming macro risks, investors may be well advised to maintain a cautiously optimistic stance.
