Closing Bell: Sensex, Nifty post biggest single-day gain in absolute terms; D-Street investors become richer by ₹16 lakh crore

The Indian share market recorded its biggest-ever single-day gain in absolute terms on Monday amid a slew of positive developments, including a ceasefire between India and Pakistan, sustained foreign fund inflows, and a U.S. trade deal with China. The BSE benchmark Sensex gained 2,975 points, or 3.74%, to end the day at 82,430, while the NSE Nifty rallied 917 points, or 3.82%, to end at 24,924, registering their biggest single-day gain. In terms of percentage, the 30-share Sensex and the Nifty50 logged a record-breaking single-day rally, last seen in February 2021.  

Driven by a broad-based rally, the cumulative market capitalisation of BSE-listed firms surged by ₹16 lakh crore to ₹432.47 lakh crore ($5.05 trillion) at the end of today’s session. 

Early today, the 30-share Sensex opened 1,349 points higher at 80,804, while it gained 3,041 points intraday to hit the day’s high of 82,496 during the session. Similarly, the Nifty50 jumped 937 points to touch an intraday high of 24,945, after opening up by 412 points at 24,420.

The broader markets also saw a spurt in buying, in sync with the benchmark indices. The BSE mid-cap closed 3.85% higher and the BSE small-cap index surged 4.18%.

The market breadth, indicating the overall strength, was highly positive, with 3,543 stocks out of 4,254 traded ending in the green zone. While the shares of 577 companies declined, 134 ended the day unchanged. As many as 498 stocks hit their upper circuits, while 185 shares slipped to their lower circuit levels.  

The easing of geopolitical concerns and progress on global trade talks brought significant relief to the markets, and this was reflected in a sharp drop in the volatility index, India VIX, which dropped 15% to 18.39.

Top gainers and lowers

Among the BSE Sensex pack, 28 of the 30 stocks ended in positive terrain, barring Sun Pharma and IndusInd Bank . The top five gainers were Infosys (7.9%), HCLTech (6.35%), Tata Steel (6.16%), Zomato (5.68%), and Tech Mahindra (5.36%).

Meanwhile, IndusInd Bank was the top loser among blue-chip stocks, falling 3.57%, followed by Sun Pharma, which ended 3.36% lower on the domestic bourses.

Reliance Industries Ltd (RIL), the country’s most valued firm, settled 4.2% higher, while Tata Consultancy Services (TCS), the second most valued stock, gained 5.2%.

On the sectoral front, all major sectors witnessed a surge in buying, with IT and realty leading the charts. The Nifty IT and Realty indices added 6.7% and 5.9%, respectively, while Nifty metal, energy, bank, consumer durables, oil & gas, and FMCG climbed up to 5.8%.

The Nifty Pharma and healthcare indices also ended in the green, staging a smart recovery after early losses triggered by U.S. President Donald Trump’s comment that he will sign an executive order that will reduce drug prices in the US “almost immediately” by 30-80%. 

What fuelled the rally in Indian stocks?

“A confluence of positive geopolitical and economic developments—the ceasefire between India and Pakistan, coupled with a breakthrough trade agreement between the US and China—sparked the strongest daily market rally in recent times,” said Vinod Nair, Head of Research, Geojit Investments.

Adding to it, sustained foreign institutional investor (FII) inflows, along with a resurgence in retail participation fuelled by expectations of a swift improvement in business sentiment, propelled today's upside, he said.

However, while the momentum remains strong, the “market may enter a phase of consolidation in the near term” as investors await concrete signs of earnings growth. In the meantime, mid- and small-caps are expected to maintain the optimism in the broad market, Nair said.

Technically, the sharp rise in the Nifty marks a continuation of the uptrend following a three-week consolidation phase, said Ajit Mishra, SVP-Research, Religare Broking. “Having crossed the previous swing high of around 24,857, the index is now poised to inch towards the 25,200 level, while the 24,400–24,600 zone is expected to offer strong support on any dip.”

In light of the widespread buying momentum, a “buy on dips” strategy remains prudent, say experts. Investors should focus on selecting stocks based on the relative strength of specific sectors and the prevailing market themes, the experts add.

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