Indian equity markets witnessed a roaring start to the week with the Sensex and Nifty 50 both closing at their highest levels in five months. The Sensex rose by a staggering 710 points to 61,764, while the Nifty 50 surged by 195 points to 18,264. The Nifty Bank index led the gains, rising by 623 points to 43,284, while the midcap index rose by 327 points to 32,476.
The financial sector played a crucial role in lifting the market, with most Nifty Bank constituents closing in the green. ICICI Bank, HDFC Bank, Bajaj Finance, HDFC, and Reliance were among the top contributors to the Nifty. Realty and auto shares also witnessed a surge of 2 percent each on expectations of a pause to rate hikes.
IndusInd Bank regained Friday's losses and emerged as the top Nifty gainer post new appointments. Manappuram Finance also surged by 5 percent after clarifying that its recent ED issue won't impact its financials. Laurus Labs extended its gaining streak, rising by over 7 percent this month. On the other hand, AB Fashion slipped by 3 percent and TCNS tumbled by 20 percent following the deal announcement.
The market breadth favored advances, with the advance-decline ratio at 4:3. BSE companies gained a market cap of nearly Rs. 2.5 lakh crore. Exide ended the day with a gain of 2 percent despite March quarter earnings coming below estimates, while Canara Bank ended 2 percent lower but off intra-day lows, with March quarter NII up 23 percent YoY. UPL reported March quarter earnings largely below estimates but ended with minor gains.
Overall, the market ended on a high note, erasing the losses from the previous trading session on Friday, which saw the biggest single-day fall in two months. The expectation of a pause to rate hikes and strong performances from key sectors like finance and oil and gas shares, provided a boost to the market. Investors are now eagerly waiting for financial results from India Inc for further cues.