Market Roundup: Sensex and Nifty Surge, Bolstered by Gains in Banking and Reliance

The Indian equity market witnessed a robust start to the week, with benchmark indices Sensex and Nifty50 registering strong gains. The positive sentiment on Dalal Street was fueled by a confluence of factors, including upbeat global cues, robust corporate earnings reports, and easing geopolitical tensions.

Sectoral Highlights

Most sectors participated in the rally, with banking stocks leading the charge. Reliance Industries Limited (RIL) also contributed significantly to the market's upward trajectory. However, the auto and realty sectors faced some headwinds.

Market Sentiment

"The market continues to be buoyed by the easing of geopolitical tensions and encouraging corporate earnings," said Dr. V K Vijayakumar, Geojit Financial. "However, sustained FII selling remains a concern, driven by high US bond yields."

Despite the persistent FII outflows, Siddhartha Khemka of Motilal Oswal projected a revival in market momentum, with a focus on individual stocks amidst the ongoing earnings season and sector rotation.

Technical Analysis

Nagaraj Shetti of HDFC Securities noted a technical shift in Nifty's short-term trend. "The immediate support level stands at 22,300, and a break below this could invite further correction," he said.

Global Cues

US stock markets closed higher on Friday, propelled by strong performances from technology giants Alphabet and Microsoft. Encouraging inflation data also lent support to the rally. Asian stocks followed suit, extending the gains from the US market.

Oil Market

Oil prices eased in early Asian trading, reversing Friday's gains. The US inflation data tempered hopes of interest rate cuts and strengthened the dollar, weighing on oil demand.

Currency and FII Activity

The US dollar weakened slightly in early Monday deals, while the rupee declined against the dollar on Friday. FIIs continued their net selling, offloading shares worth Rs 3,408 crore, while DIIs bought shares valued at Rs 4,357 crore.

Corporate Earnings

UltraTech Cement, Trent, and UCO Bank are among the companies expected to release their fourth-quarter earnings today. Investors will keenly observe these results for insights into corporate health and the broader economic landscape.

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