Closing Bell: Sensex settles 455 pts higher, Nifty above 25,000; M&M, Nestle, HCL Tech, Tata Motors, ITC lead

Indian share market extended gaining streak for the second straight session on Monday, with the benchmark indices BSE Sensex and NSE Nifty rising 0.6% each amid broad-based buying across sectors. The market sentiment was lifted by President Donald Trump-led U.S. administration’s decision to consider extending the deadline for imposing aggressive tariffs on European Union as well as fall in the dollar index.

The 30-share Sensex ended up by 455 points, or 0.56%, at 82,176, and the Nifty50 closed higher by 148 points, or 0.6%, at 25,001. Similarly, in the broader markets, Nifty Midcap100 and Nifty Smallcap100 indices advanced 0.67% and 0.37%, respectively.

Out of 30 shares on BSE Sensex pack, 22 constituents ended in green, led by Mahindra and Mahindra , Nestle India , HCL Tech , Tata Motors , and ITC, rising in the range of 1.5% to 2.2%. On the other hand, Eternal (Zomato) , Ultratech Cement , Power Grid , Sun Pharma , and NTPC were among top five laggards. While Eternal shares declined 4.5%, other four ended marginally lower by 0.5%.

Among sectors, all indices on the NSE ended in positive terrain, led by Nifty Auto, IT and FMCG indices, which rose 1% each.

"The U.S. decision to consider extending the deadline for imposing aggressive tariffs on EU, coupled with a decline in the dollar index, contributed to a rebound in the domestic equity markets. These developments suggest that trade negotiations are progressing constructively, which could help moderate market volatility,” said Vinod Nair, Head of Research, Geojit Investments.

Besides, the early onset of the southwest monsoon and decline in domestic bond yields also encouraged investors to maintain their focus on riskier assets. “The broader market outperformed, driven by expectations of increased rural consumption and a stronger Q4 GDP, following better-than-anticipated corporate earnings for the quarter," he added.

Technically, as the Nifty once again approaches its previous swing high, sustained strength in key sectors, especially banking, will be crucial to surpass the 25,200 hurdle and regain upward momentum, said Ajit Mishra – SVP, Research, Religare Broking. “In the meantime, traders are advised to remain stock-specific and use any intermediate dips or pauses as opportunities to accumulate quality names across sectors," he added.

On the daily chart, a higher top–higher bottom formation remains intact for the Nifty, said Rupak De, Senior Technical Analyst at LKP Securities. “In the short term, the index is likely to remain strong with the potential to extend its gains towards the 25,300–25,350 range. On the lower end, support is visible at 24,800," he said.

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