The Nifty 50 made a strong comeback on Monday, reclaiming the 25,100 mark and closing at a one-week high. This remarkable rise was primarily driven by gains in heavyweight stocks such as HDFC Bank, L&T, and ITC, with substantial contributions from the information technology sector. The Nifty ended the day up 164 points at 25,128, positioning itself 1,253.9 points away from its recent record high of 26,277.35.

Meanwhile, the Sensex experienced a notable increase, rising 592 points to finish at 81,973. The performance of the Nifty Bank index was particularly impressive, gaining 645 points to settle at 51,817, surpassing critical 50 and 100-day moving averages. In addition, midcap stocks demonstrated resilience by closing 450 points above their intraday lows, leading the Midcap index to rise 258 points to 59,471.

Federal Bank emerged as the top gainer in the midcap segment, surging 5%, while MTNL soared 6% on reports of a potential revival plan. In the IT sector, buying interest returned, with stocks like Wipro and Tech Mahindra leading the Nifty gainers. HCLTech saw a rise of more than 1% ahead of its earnings report, indicating positive market sentiment. Reliance Industries, however, ended the day flat as investors awaited its second-quarter results.

The bullish sentiment was also reflected in the performance of L&T, which gained over 2% following a positive brokerage note. Expectations of healthy festive demand further spurred buying in two-wheeler auto stocks.

In a noteworthy development, Gopal Snacks Ltd. gained as much as 5% after brokerage firm Emkay initiated coverage on the stock with a ‘Buy’ rating and a price target of ₹600 per share, based on a valuation of 40 times price-to-earnings.

Conversely, the market witnessed some declines, particularly for Tata Chemicals and Bandhan Bank, which faced sharp drops after exiting the F&O ban. Shares of ONGC also fell amid declining crude prices, with Brent crude slipping below $78 per barrel. This decline prompted a rise in shares of oil marketing companies, highlighting the interconnected nature of the energy and stock markets.

The Indian Energy Exchange (IEX) closed down 4% after comments from the Power Secretary regarding market coupling commitments resurfaced, raising concerns among investors. City gas stocks also slipped due to expectations of lower APM gas allocations.

Despite the mixed performance, realty stocks, including Oberoi Realty and Godrej Properties, saw gains, with Oberoi rising 4%. However, fears surrounding market coupling had a pronounced impact on IEX shares, which fell as much as 6% on Monday.

Overall, market breadth remained neutral, reflecting an advance-decline ratio of 1:1, indicative of a balanced trading environment.

As the market gears up for upcoming trading sessions, analysts anticipate further movements based on economic indicators and corporate performance. Stakeholders are encouraged to stay informed on the latest developments and market trends.

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