The Indian stock market continued its winning streak on Monday, closing in green for the sixth consecutive trading session, backed by strong gains in banking, FMCG, and real estate sectors. The BSE Sensex gained 187 points to close at 79,596, and the Nifty 50 advanced 42 points to 24,167, marking a solid start to the week.

Banking Sector Drives Market Momentum

The major driver of the market rally was the banking sector, with the Nifty Bank index jumping 343 points to hit a record high of 55,647, continuing its momentum for the second consecutive session. Among the banking heavyweights, HDFC Bank made headlines by crossing a market capitalisation of ₹15 trillion, becoming the third Indian company to achieve this milestone.

ICICI Bank and Kotak Mahindra Bank also attracted strong buying interest, reinforcing bullish sentiment in the sector. The robust performance of banks provided a strong foundation for the broader indices, helping offset volatility in other areas.

Midcaps and FMCG Stocks Join the Rally

The midcap segment mirrored the upbeat mood, with the Nifty Midcap 100 climbing 423 points to close at 54,397, indicating widespread investor confidence.

FMCG stocks saw a renewed surge, following upgraded outlooks from major brokerages. ITC gained nearly 2%, while Hindustan Unilever (HUL) also saw a significant upside, as positive reports from research firms boosted investor sentiment. This reflected growing confidence in consumer demand recovery and margin resilience in the sector.

Steel Stocks Moderate After Early Gains

While steel stocks opened strong, news about the 12% safeguard duty notification created some hesitation, limiting their upside. Despite this, the sector managed to close in the green, supported by sustained demand and broader market strength.

IndusInd Bank Falls After Forensic Audit Report

In contrast to the market’s positive tone, IndusInd Bank shares plunged over 5%. The drop followed reports that the bank had appointed Ernst & Young (EY) for a forensic audit of its microfinance loan book. The development raised concerns about financial irregularities, dampening investor enthusiasm.

Auto Stocks Hit by Downgrades

Bajaj Auto and Hero MotoCorp faced pressure after Jefferies downgraded both stocks, citing intensifying competition and margin headwinds in the two-wheeler space. The downgrade led to a 1-2% fall in their stock prices.

Gold Stocks Benefit from Global Rally

Gold prices soared to a record $3,500 per ounce, sparking a rally in gold loan NBFCs. Muthoot Finance and Manappuram Finance saw their shares rise sharply, driven by higher asset valuations and potential growth in lending.

Chola Investment Drops After Valuation Concerns

On the downside, Chola Investment stock plunged nearly 6%, after CLSA downgraded it, citing valuation concerns and growth outlook. This marked a significant outlier in an otherwise bullish session.

Voltas Rises on Regulatory News

Air conditioning major Voltas gained 2%, supported by speculation of relaxed BIS norms by the government. Easing standards would likely lower compliance burdens and improve industry efficiency, making the stock a beneficiary of potential policy changes.

HCL Technologies Steady Ahead of Q4 Earnings

HCL Tech ended flat, with investors awaiting its Q4 results later this week. The results are being closely watched for growth signals in the IT services sector and updates on client spending trends.

Real Estate Stocks Shine

The real estate sector was among the top performers, with many counters rising between 2% and 4%. Improved buyer sentiment, robust demand, and supportive government policies were key drivers of this rally.

Liquor Stocks Rise on GIFT City Policy Boost

In a policy surprise, the government announced relaxed liquor permit rules at GIFT City, boosting liquor sector sentiment. United Spirits surged 3%, while United Breweries added 1% on the back of this announcement.

Market Breadth Remains Positive

The market showed a strong advance-decline ratio of 2:1, reflecting broad-based participation in the rally. This suggests a sustained bullish sentiment across sectors, with institutional and retail investors both active in the market.

Conclusion

With banking and FMCG stocks leading the charge, the Indian market continues to maintain positive momentum. Despite isolated concerns around specific companies like IndusInd and Chola, the overall sentiment remains upbeat. Investors are now eyeing upcoming corporate earnings and macro data for further cues. If the momentum sustains, the indices could soon test new lifetime highs.

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