Sensex, Nifty post best single-day rise in seven weeks on heavyweights

Indian equity markets surged on Monday, with benchmark indices notching their biggest single-day gains in nearly seven weeks, fuelled by strong advances in heavyweight stocks like HDFC Bank and Reliance Industries. 

The Sensex climbed 746 points (0.9 per cent) to close at 80,604, while the Nifty added 222 points (0.9 per cent) to settle at 24,585. For both indices, it was their most robust performance since June 26. Total market capitalisation of BSE-listed firms jumped by ₹3.4 trillion, reaching ₹444 trillion. 

Gains were also attributed to a bout of short covering by foreign portfolio investors (FPIs), after bearish bets had reached a multi-year high. As of August 8, the FPI long-short ratio in index futures stood at just 8.28 per cent — meaning for every 100 short positions, there were only eight long positions. Among individual stocks, HDFC Bank rose 1.2 per cent and Reliance Industries 1.4 per cent leading the rally. State Bank of India (SBI) climbed 2.5 per cent after reporting a 12.5 per cent year-on-year increase in net profit to ₹19,160 crore for Q1FY26, buoyed by strong treasury gains. 

“PSU banks took the limelight amid Q1 results from the banking major, and broad-based momentum was visible across sectors. Investors remain cautiously optimistic about the upcoming US-Russia summit, which may help ease geopolitical tensions. 

  However, the true impact of US trade policy on growth remains to be seen,” said Vinod Nair, head of research, Geojit Financial Services. 

Despite Monday’s gains, Indian equities have been under pressure. Last week, Sensex dropped 0.9 per cent and Nifty 0.8 per cent, marking a sixth straight week of losses — the longest losing streak since April 2020. 

Market sentiment has been dampened by ongoing trade tensions with the US and muted corporate earnings. Last week, US President Donald Trump imposed a fresh 25 per cent tariff on Indian exports, citing India’s continued oil imports from Russia.  This move deepened the standoff between the nations, following earlier tariff hikes and contentious remarks on regional security. 

Market breadth was favourable, with 2,181 stocks advancing against 1,983 declines.