Mumbai: Indian Stock Markets bounced back on Monday after six consecutive weeks of losses, with investors returning to major companies and taking advantage of lower prices. The recovery came as crude oil prices eased, the rupee strengthened and foreign investors returned to buying selected Indian equities.
The Sensex gained 564 points to close at 74,858.99, while the Nifty 50 rose 78.05 points to end at 23,424.45. The gains provided relief after both benchmarks had recorded their sixth straight weekly decline last week, their longest such losing streak in around six years.
The rebound was supported by buying in heavyweight stocks, including Reliance Industries, HDFC Bank and ICICI Bank. Large companies have a significant influence on the benchmark indices, meaning buying in these stocks can have a noticeable impact on the overall market.
Crude oil was another important factor. Brent crude fell more than 2% to around $101.5 a barrel during Monday’s trading, easing some pressure on countries such as India that depend heavily on imported oil. Lower crude prices can help reduce pressure on India’s import bill and inflation, although oil remains above the levels seen earlier in the year.
Foreign investor activity also showed signs of improvement. Foreign institutional investors bought around ₹600 crore worth of Indian equities on Friday after a prolonged period of selling. Domestic institutions have also been supporting the market and have played an important role in absorbing foreign outflows.
However, Monday’s recovery was not uniform across the market. Reuters reported that 12 of the 16 major sectors advanced, while mid-cap and small-cap stocks remained comparatively weak. This suggests that investors were still more selective and were showing greater interest in established companies rather than taking broad positions across the market.
The market is also dealing with several external pressures. Global bond yields, US monetary policy, geopolitical tensions in West Asia and crude oil prices remain important factors for Indian equities. A sustained rise in oil prices could again put pressure on inflation and the rupee.
The primary market is also drawing investor attention. The National Stock Exchange’s IPO of around ₹22,569 crore entered its final subscription day on Monday, creating another major demand for investor capital at a time when secondary-market liquidity remains closely watched.
