How Did the Indian Stock Market Surge with Strong Gains?

Mumbai, April 28 (NationPress) The Indian stock market experienced a remarkable rebound on Monday, showcasing resilience amid ongoing geopolitical tensions. The benchmark indices concluded the trading session with impressive gains.

The surge was primarily fueled by the strong performance of select banking stocks, alongside optimism regarding a potential new trade agreement between India and the US.

Starting on a positive note, the Sensex opened with an uplift of about 120 points, commencing at 79,344. As the day unfolded, the index continued its ascent, reaching a yearly peak of 80,322 before wrapping up at 80,218, an increase of 1,006 points or 1.27 percent.

This represented a notable recovery for the index. In a similar vein, the Nifty index also exhibited positive momentum, fluctuating between 24,054 and 24,355, ultimately settling at 24,329, up by 289 points or 1.2 percent.

“The resistance level remains at 24,360, and the Nifty is likely to hover around this range unless it breaks through decisively,” noted Rupak De from LKP Securities.

He further commented that if the index surpasses 24,360, it could advance toward 24,550, aligning with the 61.80 percent Fibonacci retracement level from the previous dip between 26,277 and 21,743.

Key banking stocks including ICICI Bank, HDFC Bank, Axis Bank, and SBI significantly contributed to the market's robust performance, collectively accounting for 340 points of the Sensex’s gains. These four stocks constituted nearly 75 percent of the total gains for the day.

Individual stocks such as Sun Pharma, Mahindra and Mahindra, Tata Steel, SBI, Axis Bank, Tata Motors, and Larsen and Toubro witnessed stock price increases ranging from 2 to 3 percent.

Conversely, companies like HCL Technologies, UltraTech Cement, Hindustan Unilever, and Eternal faced declines, with HCL Technologies dropping nearly 2 percent.

In the broader market landscape, the BSE MidCap index advanced by 1.4 percent, while the SmallCap index experienced a modest gain of 0.4 percent.

Sectoral indices also reflected positive trends, with the BSE Oil and Gas index leading the charge, surging by nearly 3 percent.

Other sectors, including banking, capital goods, automotive, metals, and healthcare, concluded the day on a high note, each recording gains exceeding 1.5 percent.

The rupee remained strong at 84.98, appreciating by 0.25, bolstered by a considerable rally in capital markets, where major indices rose by 1.20 percent and the banking index surged by 1.41 percent.