Mumbai: The Indian stock markets staged a strong recovery on Monday, driven by a global rally and buying in financial stocks. The benchmark indices, Sensex and Nifty, rebounded sharply, snapping a five-day losing streak. The BSE Sensex surged 363.67 points to reach 74,192.58 in early trade, while the NSE Nifty climbed 115.3 points to 22,512.50.
IndusInd Bank Leads the Surge
Among the key gainers, IndusInd Bank surged nearly 5 per cent following the Reserve Bank of India's (RBI) assurance that the bank remains well-capitalized. The central bank also directed IndusInd Bank’s board to complete remedial action regarding an estimated Rs 2,100 crore accounting discrepancy within the month. Other financial majors, including Bajaj Finserv, Bajaj Finance, Mahindra & Mahindra, Adani Ports, Maruti, and Tata Motors, also registered strong gains.
Technology and FMCG Stocks Under Pressure
On the other hand, select IT and FMCG stocks faced selling pressure. Nestle, HCL Tech, State Bank of India, Tech Mahindra, and Infosys were among the laggards in the early session.
Positive Cues from Global Markets
Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, traded in positive territory, tracking Wall Street’s sharp gains on Friday. US markets ended on a strong note in the previous session, providing a boost to investor sentiment globally.
Macroeconomic Data Supports Market Optimism
According to market analysts, the recent improvement in India’s macroeconomic indicators has supported the positive sentiment. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the declining trend in foreign institutional investor (FII) outflows and India's outperformance compared to the US last week contributed to the market recovery. He pointed out that factors such as the GDP growth bounce-back to 6.2 per cent in FY25 Q3, a spurt in January's Index of Industrial Production (IIP) to 5 per cent, and a decline in February's Consumer Price Index (CPI) inflation to 3.61 per cent created a favorable backdrop for the markets.
Trade War Fears Loom Over Global Growth
Despite the current market optimism, concerns persist over global trade tensions. "The trade war fears are looming large on global trade and growth," Vijayakumar cautioned.
FII Outflows and Key Data to Watch
Foreign institutional investors continued their selling streak, offloading equities worth Rs 792.90 crore on Thursday, exchange data showed. So far in 2025, total FII outflows have reached Rs 1.42 lakh crore (USD 16.5 billion), according to depository data.
With domestic stock markets closed on Friday for Holi, investor focus this week will be on key macroeconomic data, including Wholesale Price Index (WPI) inflation, trade figures, and FII activity. "Attention will be on WPI inflation, trade data, and FII activity," said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
Brent Crude Gains Amid Market Rally
Meanwhile, global oil benchmark Brent crude rose 0.64 per cent to USD 71.03 per barrel, adding to the positive momentum in equity markets.
Previous Market Performance
In the last session on Thursday, the Sensex had declined 200.85 points or 0.27 per cent to settle at 73,828.91, while the Nifty had fallen 73.30 points or 0.33 per cent to close at 22,397.20. However, Monday’s rebound suggests renewed investor confidence amid favorable economic indicators and positive global cues.
