Mumbai: Indian stock markets saw a strong rally on Monday, extending the gains from Friday. The Sensex jumped nearly 500 points to trade close to 85,430, while the Nifty rose about 172 points to around
26,138. The positive mood came as investors returned to buying ahead of Christmas, supported by both global and domestic factors.
Broad-Based Buying Across Sectors
All major sectoral indices were trading in the green. Information Technology and metal stocks led the rally with gains of over 1 per cent. Financial services rose nearly 0.4 per cent, auto stocks gained around 0.6 per cent, and FMCG shares were also higher. Media and realty sectors showed solid buying interest, reflecting broad confidence across the market.
Foreign Investors Lead the Charge
One of the biggest reasons behind the market’s strength was continued buying by foreign institutional investors (FIIs). On Friday alone, FIIs purchased Indian equities worth about Rs 1,830 crore. This marked the third straight day of strong foreign inflows, which helped lift investor sentiment and added momentum to the rally.
Hope of US Rate Cuts Boosts Confidence
Another key driver was the expectation that the US Federal Reserve could cut interest rates twice by 2026. Although recent data did not give clear signals, hopes of lower rates remain strong. US President Donald Trump has also spoken in favour of faster rate cuts, which has supported risk appetite in global markets.
Positive Signals from Global Markets
Global cues added further support. During trading hours, US futures were up nearly 0.3 per cent, raising hopes of a positive opening for Wall Street. This optimism spilled over into Indian markets, strengthening confidence among investors.
Top Gainers Drive the Index Higher
Most stocks in the Nifty 50 were trading higher. Shares of Infosys, Shriram Finance, Hindalco, Wipro, Bajaj Auto, Tech Mahindra and Tata Steel saw strong gains. Metal and IT stocks attracted the most buying, helped by global market strength and currency trends.
Trend Turns After Recent Weakness
The rally helped markets break a four-day losing streak. GIFT Nifty was trading more than 130 points higher than Friday’s close, signalling a gap-up opening. With more than 40 Nifty stocks closing higher, the market ended near the day’s high, reflecting strong bullish sentiment.
