Indices rise on IT, finance gains; Sensex up 638, Nifty climbs 206

Equity benchmarks rose on Monday led by IT and banking stocks, amid hopes of foreign inflows on expectations of lower US rates, though FPIs remained net sellers during the session

Indian equity benchmarks rose on Monday, led by information technology and banking stocks, and hopes that foreign portfolio investors (FPIs) will become net buyers soon. The Sensex ended the session at 85,568, a gain of 638 points or 0.8 per cent. Nifty, meanwhile, ended the session at 26,172, a gain of 206 points or 0.8 per cent. For both indices, Monday's gain was the biggest since November 26. The total market capitalisation of BSE-listed firms rose by ₹4 trillion to ₹475 trillion.

 

Hopes of a US Federal Reserve rate cut next year have boosted expectations that FPIs will again turn buyers. Lower interest rates in the US boost the prospects of emerging markets like India in attracting foreign investor money. FPIs have been net sellers this year, worth ₹1.5 trillion, as Indian equity markets grappled with a decline in corporate profits and punitive US trade tariffs.

 

Infosys, which rose 3.06 per cent, was the biggest contributor to Sensex gains following a surge in its American Depository Receipts (ADR). In the last three sessions, Infosys ADR surged 14 per cent.

 

" Indian markets extended their year-end rally, supported by strong liquidity and global cues, as expectations of further Fed easing in 2026 continue to underpin growth. Gold hit a record high, driven by rate-cut expectations, robust central bank buying, sustained ETF inflows, and heightened global tensions, including Ukraine's strike on a Russian vessel. Investors now await the GDP estimate for clarity on policy, with consensus pointing to resilient growth. However, caution persists amid limited progress on trade negotiations, geopolitical uncertainties, and crude price volatility," Vinod Nair, head of research at Geojit Investments.

 

Market breadth was strong, with 2,768 stocks advancing and 1,551 declining. FPIs were net sellers to the tune of ₹457 crore, and domestic institutions were buyers worth ₹4,058 crore.

 

"We are of the view that the short-term market texture is bullish, but buying on intraday dips and selling on rallies would be the ideal strategy for day traders. On the downside, 26,100 and 26,050 for Nifty while 85,300 and 85,000 for Sensex would act as key support zones. At the same time, 26,200/85700 would serve as an immediate resistance zone for the bulls," said Shrikant Chouhan, head of equity research at Kotak Securities.