Indian Equity Market Gains Amid Sectoral Shifts and Positive Global Cues

The Indian equity market closed higher, aided by gains in consumer goods and IT stocks. While Sensex and Nifty rose, midcap index fell. Awaiting crucial GST data, investors remain cautious as global markets exhibit flat movement. FIIs show renewed interest.

The Indian equity market concluded trading on a positive note on Monday, buoyed by gains in consumer goods and IT sectors. The Sensex rose 194 points to close at 82,560, while the Nifty added 43 points, finishing at 25,279.

In contrast, the midcap index recorded a decline, dropping 134 points to settle at 59,153. However, the Nifty Bank index gained 89 points, ending the day at 51,440. Out of the 4,008 companies traded, 1,684 advanced, 2,191 declined, and 133 remained unchanged.

Investors are closely monitoring the upcoming Goods and Services Tax (GST) data for August. Additionally, the Manufacturing Purchasing Managers' Index (PMI) for August dropped slightly to 57.5 from July's 58.1, as reported by HSBC India Manufacturing PMI. Foreign portfolio investors (FIIs) have shown renewed interest in Indian equities. Globally, stock markets remained cautious ahead of significant data releases this week, with overall flat movement observed.

"Markets are inching higher every day, buoyed by favorable global cues and rotational buying in heavyweight stocks. However, the ongoing underperformance of banking majors is dampening sentiment. We recommend aligning trades with the prevailing trend and seeking buying opportunities during market dips," remarked Ajit Mishra, SVP Research at Religare Broking Ltd. "The market is witnessing a steady but mild upward movement, driven by the accumulation of quality large-cap stocks. FIIs turning buyers last week, mainly due to some large bulk deals, has also improved market sentiment. A positive close today would mark a record for the Indian stock market, with the Nifty posting a 13-day winning streak," added V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"Sectoral churns are happening faster now, notably in IT stocks rebounding on hopes of increased tech spending in the US. Pharma stocks are witnessing accumulation due to improving business prospects, while profit booking is occurring in segments like railways and defense due to valuation concerns," he added. Vijayakumar also noted that the first-quarter GDP data for the financial year 2025, which stood at 6.7%, indicates mild sluggishness in the economy, possibly prompting the RBI to consider rate cuts in its next monetary policy meeting. Rate cuts could benefit struggling banking stocks, he mentioned.

(ANI)

(With inputs from agencies.)