The Indian stock market closed over 3.7% on Monday, posting its strongest session in nearly a year and recouping last week's losses, as easing border tensions with Pakistan, renewed optimism over U.S.-China trade talks, and a supportive domestic macro backdrop fuelled broad-based buying across sectors.
The BSE Sensex jumped 2975.43, or 3.74%, to close at 82,429.90, while the Nifty 50 surged 916.70 points, or 3.82%, to close at 24,924.70.
Here's how analysts read the market pulse:
A confluence of positive geopolitical and economic developments—the ceasefire between India and Pakistan, coupled with a breakthrough trade agreement between the U.S. and China—sparked the strongest daily market rally in recent times, said Vinod Nair, Head of Research, Geojit Investments, adding that, the tariff issue had the pivotal role in the stock market's consolidation over the year.
“Sudden easing of the U.S.-China tariff war unlocked multiple investment avenues for investors. Sustained foreign institutional investor (FII) inflows, along with a resurgence in retail participation fuelled by expectations of a swift improvement in business sentiment, propelled today's upside. However, while the momentum remains strong, the market may enter a phase of consolidation in the near term as investors await concrete signs of earnings growth. In the meantime, mid & small caps are expected to maintain the optimism in the broad market," said Nair.
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US markets
The S&P 500 climbed to its highest level since early March on Monday after a key U.S.-China agreement to sharply reduce tariffs eased global trade concerns.The Dow Jones surged 1,037.13 points (2.51%) to 42,286.51, the S&P 500 advanced 150.24 points (2.65%) to 5,810.15, and the Nasdaq jumped 621.90 points (3.47%) to close at 18,550.82.
As part of the deal, the U.S. will lower its April-imposed tariffs on Chinese goods from 145% to 30%, while China will cut its retaliatory duties on U.S. imports from 125% to 10%. The tariff reductions will remain in effect for 90 days.
European stocks
European shares started the week on a positive note on Monday after the United States and China agreed to temporarily slash tariffs, providing some relief to global markets roiled by the trade war.
The pan-European STOXX 600 index closed 1.2% higher, while regional bourses including ones in Germany and the UK were up.
Traders reduced bets on interest rate cuts from the European Central Bank after the deal, with the reduced odds also aided by ECB board member Isabel Schnabel's remarks.
Tech View
The Nifty witnessed its best day in four years as multiple positive news developments triggered a risk-on sentiment, said Rupak De, Senior Technical Analyst at LKP Securities, adding that “technically, the index has broken out of recent consolidation across multiple timeframes, confirming a positive trend.”
“Additionally, it continues to sustain above a crucial moving average. Going forward, any dips are likely to be bought into as long as the index remains above 24,350. On the higher end, this leg of the rally might extend towards 25,350/25,750 in the short term," said Nair.
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Most active stocks in terms of turnover
BSE (Rs 2,757 crore), HDFC Bank (Rs 1,814 crore), Infosys (Rs 1,813 crore), Hindustan Aeronautics Ltd (Rs 1,800 crore), Mazagon Dock Shipbuilders (Rs 1,674 crore), Sun Pharmaceutical Industries (Rs 1,542 crore) and Reliance Industries Ltd (Rs 1,522 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms
YES Bank (Traded shares: 52.75 crore), Vodafone Idea (Traded shares: 41.42 crore), Reliance Power (Traded shares: 16.48 crore), Suzlon Energy (Traded shares: 8.95 crore), Canara Bank (Traded shares: 4.93 crore), Tata Steel (Traded shares: 4.70 crore) and HFCL Ltd (Traded shares: 4.32 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Shares of Cera Sanitaryware, Syrma SGS Technology, JBM Auto, Rail Vikas Nigam Ltd, Jupiter Wagons, Reliance Power and HFCL Ltd were among the stocks that witnessed strong buying interest from market participants.
52 Week high
Over 110 stocks hit their 52 week highs today while 48 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included ICICI Bank.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were KPR Mill, Jyothy Labs, IndusInd Bank, Navin Fluorine, Eris Lifesciences, Sun Pharmaceutical Industries and United Breweries.
Sentiment meter bullish
The market sentiments were bullish. Out of the 4,254 stocks that traded on the BSE on Monday, 576 stocks witnessed declines, 3,545 saw advances, while 133 stocks remained unchanged.
Also read | Which companies have large exposure to Pakistan bordering states? CLSA analyses retaliation risk
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
The BSE Sensex jumped 2975.43, or 3.74%, to close at 82,429.90, while the Nifty 50 surged 916.70 points, or 3.82%, to close at 24,924.70.
Here's how analysts read the market pulse:
A confluence of positive geopolitical and economic developments—the ceasefire between India and Pakistan, coupled with a breakthrough trade agreement between the U.S. and China—sparked the strongest daily market rally in recent times, said Vinod Nair, Head of Research, Geojit Investments, adding that, the tariff issue had the pivotal role in the stock market's consolidation over the year.
“Sudden easing of the U.S.-China tariff war unlocked multiple investment avenues for investors. Sustained foreign institutional investor (FII) inflows, along with a resurgence in retail participation fuelled by expectations of a swift improvement in business sentiment, propelled today's upside. However, while the momentum remains strong, the market may enter a phase of consolidation in the near term as investors await concrete signs of earnings growth. In the meantime, mid & small caps are expected to maintain the optimism in the broad market," said Nair.
Also read | 5 Wall Street moguls who dismissed Bitcoin as a fad — Guess what they’re saying now!
US markets
The S&P 500 climbed to its highest level since early March on Monday after a key U.S.-China agreement to sharply reduce tariffs eased global trade concerns.The Dow Jones surged 1,037.13 points (2.51%) to 42,286.51, the S&P 500 advanced 150.24 points (2.65%) to 5,810.15, and the Nasdaq jumped 621.90 points (3.47%) to close at 18,550.82.
As part of the deal, the U.S. will lower its April-imposed tariffs on Chinese goods from 145% to 30%, while China will cut its retaliatory duties on U.S. imports from 125% to 10%. The tariff reductions will remain in effect for 90 days.
European stocks
European shares started the week on a positive note on Monday after the United States and China agreed to temporarily slash tariffs, providing some relief to global markets roiled by the trade war.
The pan-European STOXX 600 index closed 1.2% higher, while regional bourses including ones in Germany and the UK were up.
Traders reduced bets on interest rate cuts from the European Central Bank after the deal, with the reduced odds also aided by ECB board member Isabel Schnabel's remarks.
Tech View
The Nifty witnessed its best day in four years as multiple positive news developments triggered a risk-on sentiment, said Rupak De, Senior Technical Analyst at LKP Securities, adding that “technically, the index has broken out of recent consolidation across multiple timeframes, confirming a positive trend.”
“Additionally, it continues to sustain above a crucial moving average. Going forward, any dips are likely to be bought into as long as the index remains above 24,350. On the higher end, this leg of the rally might extend towards 25,350/25,750 in the short term," said Nair.
Also read | Warren Buffett’s biggest investment isn’t Apple, BofA or Coca-Cola — it’s a stock hidden in plain sight
Most active stocks in terms of turnover
BSE (Rs 2,757 crore), HDFC Bank (Rs 1,814 crore), Infosys (Rs 1,813 crore), Hindustan Aeronautics Ltd (Rs 1,800 crore), Mazagon Dock Shipbuilders (Rs 1,674 crore), Sun Pharmaceutical Industries (Rs 1,542 crore) and Reliance Industries Ltd (Rs 1,522 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms
YES Bank (Traded shares: 52.75 crore), Vodafone Idea (Traded shares: 41.42 crore), Reliance Power (Traded shares: 16.48 crore), Suzlon Energy (Traded shares: 8.95 crore), Canara Bank (Traded shares: 4.93 crore), Tata Steel (Traded shares: 4.70 crore) and HFCL Ltd (Traded shares: 4.32 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Shares of Cera Sanitaryware, Syrma SGS Technology, JBM Auto, Rail Vikas Nigam Ltd, Jupiter Wagons, Reliance Power and HFCL Ltd were among the stocks that witnessed strong buying interest from market participants.
52 Week high
Over 110 stocks hit their 52 week highs today while 48 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included ICICI Bank.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were KPR Mill, Jyothy Labs, IndusInd Bank, Navin Fluorine, Eris Lifesciences, Sun Pharmaceutical Industries and United Breweries.
Sentiment meter bullish
The market sentiments were bullish. Out of the 4,254 stocks that traded on the BSE on Monday, 576 stocks witnessed declines, 3,545 saw advances, while 133 stocks remained unchanged.
Also read | Which companies have large exposure to Pakistan bordering states? CLSA analyses retaliation risk
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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