Stock Markets Rally For 6th Day; Sensex Up 388 pts, Nifty Revisits 26k Level

Stock markets rose for the sixth straight session on Monday, with the benchmark Sensex climbing 388 points and Nifty closing above the 26,000 mark following an across-the-board rally and strong quarterly performance by corporates.

Rising for the sixth consecutive day, the 30-share BSE Sensex climbed 388.17 points, or 0.46%, to close at 84,950.95. During the day, the BSE benchmark surged 425.31 points, or 0.50%, to hit an intraday high of 84,988.09.

The broader NSE Nifty rose by 103.40 points, or 0.40%, to settle at 26,013.45. In the intraday session, the NSE Nifty advanced 114.15 points, or 0.44 per cent, to hit a high of 26,024.20.

Traders said strong buying by domestic institutional investors fueled the rally.

"The market has maintained its positive momentum, hovering near the key psychological level of 26,000, as investors anticipate a strong catalyst for further upward movement.

"A potential trade deal remains a crucial trigger that participants are closely monitoring. Currently, the risk-reward ratio is largely favorable, bolstered by stronger-than-expected Q2 earnings from Midcaps, which have reinforced confidence in growth revival and point to potential future earnings upgrades," Vinod Nair, Head of Research, Geojit Investments Ltd, said.

From the Sensex pack, Eternal, Maruti Suzuki India, Kotak Mahindra Bank, Mahindra & Mahindra, Tech Mahindra, Titan, HDFC Bank, PowerGrid, Bajaj Finserv, HCL Technologies, Bajaj Finance and Larsen & Toubro were among the gainers.

On the other hand, Tata Motors Passenger Vehicles, Asian Paints, UltraTech Cement, Bharat Electronics Ltd, Tata Steel, Adani Ports, Hindustan Unilever, ITC, Tata Consultancy Services and Reliance Industries were the only laggards.

"Indian benchmark indices closed sharply higher on November 17th, with the Nifty reclaiming and firmly holding above the 26,000 level. Expectations of a major trade deal added to the optimism, acting as a potential catalyst for the next leg of the rally.

"The up-move was further supported by the NDA's decisive victory in Bihar, which reinforced confidence in policy continuity and political stability. Softer inflation data also contributed to the improved market sentiment," Bajaj Broking Research said.

The BSE Midcap gauge rose 0.66%, and smallcap went up 0.59%.

All the sectoral indices ended in green. Auto rose by 0.86%, Power by 0.83%, Bankex by 0.77%, Financial Services by 0.78%, Consumer Discretionary by 0.70%, Capital Goods by 0.60%, Industrials by 0.59%, Healthcare by 0.57%, and Utilities by 0.54%.

A total of 2,211 stocks declined while 2,082 advanced and 204 remained unchanged on the BSE.

In Asian markets, Hong Kong's Hang Seng, Shanghai's SSE Composite index, and Japan's Nikkei 225 benchmark ended in the negative territory while South Korea's Kospi settled in the positive zone.

Markets in Europe were trading in the red zone. The US markets ended largely lower on Friday.

Brent Crude, the global oil benchmark, dipped by 0.70% to USD 63.94 per barrel.

Meanwhile, foreign institutional investors remained net sellers for the fifth day in a row and offloaded equities worth ₹4,968.22 crore on Friday. However, domestic institutional investors sustained their buying spree and picked up stocks worth ₹8,461.47 crore, according to exchange data.

On Friday, the BSE Sensex ended 84.11 points higher at 84,562.78, while the NSE Nifty went up 30.90 points to settle at 25,910.05.