Indian stock markets concluded Monday with gains for a fourth consecutive session, with benchmark indices Sensex and Nifty 50 closing higher amid overall bullish global sentiment. Sensex jumped 544.39 points or 0.70% to close at 78,639.03, while the Nifty 50 rose 390.70 points or 1.60% to end the session at 24,774.30. The positive momentum is expected to continue into Tuesday's trading session, with GIFT Nifty's August 2026 futures currently trading 47.50 points higher, suggesting a positive opening for the benchmark index today. This follows recent strong performance where Sensex gained 274 points, or 0.35% to close at 77,928, while the Nifty rose 67 points, or 0.28% to 24,317. Broader markets also remained in the green, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising more than 0.4%, though market breadth remained weak with 1,620 shares advancing against 2,408 declining. In the latest session, the Sensex rallied 2.44% over four consecutive sessions while the Nifty jumped 3.29%, with the Nifty settling above the 24,750 mark.
The positive market sentiment was primarily driven by earnings optimism from US technology giants, with Microsoft's strong earnings outlook and upbeat commentary from Amazon reassuring investors that spending on AI infrastructure continues to generate robust growth. This optimism helped offset the impact of geopolitical headwinds that had been weighing on investor sentiment in recent sessions. The rebound followed strong gains in AI-linked technology stocks overnight, lifting semiconductor shares across global markets and improving overall risk appetite. US markets closed sharply higher on Thursday, with the Nasdaq Composite leading the charge, surging 2.78% to 25,122.18, while the S&P 500 jumped 1.66% to 7,437.63 and the Dow Jones Industrial Average gained 1.19% to 52,208.06. Asian markets also rallied sharply, with Japan's Nikkei 225 surging 4.37% in a sharp rebound, Vietnam's HNX 30 jumping 2.28% and Indonesia's JSX Composite climbing 1.56%, while China's Shanghai Composite added 0.77%. Overnight in the US, markets took confidence from data showing that US manufacturing activity increased to the highest level in more than four years in July, sending the Dow Jones to a record close.
Nearly all sectoral indices traded in the green, with Nifty Auto emerging as the best-performing sectoral gauge, climbing 1.6% on strength in Mahindra & Mahindra, Eicher Motors and Maruti Suzuki. The Nifty Financial Services excluding banks sharply surged nearly 3%, tracking the sharp rally in the Bajaj twins. Nifty Auto gained around 2%, while Nifty Oil & Gas rose more than 1%. However, ITC and Eternal shares dropped around 3% each to lead losses, while Tata Steel, Adani Ports and Reliance Industries shares rose 1-2% to follow the broader market trend. The Nifty settled above the 24,750 mark, supported by gains in IT and private banking stocks, with broad-based buying lifting most sectoral indices. The overall market breadth turned weak despite benchmark gains, with Nifty Midcap and Smallcap indices underperforming, falling 0.4% and 0.6% respectively.
Foreign institutional investors (FIIs) extended their buying streak for a fourth consecutive session on Monday, purchasing Indian equities worth ₹922.26 crore, signalling sustained confidence in domestic markets. During the last three days, FIIs have cumulatively bought equity for ₹7,360 crore, with analysts noting that this FII buying has the potential to impart resilience to the market. However, Domestic institutional investors (DIIs) turned net sellers after five consecutive sessions of buying, offloading equities worth ₹1,571.18 crore in the latest session. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, highlighted that India is a stable market with limited downside risks, particularly in largecaps where valuations are fair and growth prospects are good. The positive sentiment is expected to continue with Bajaj Broking expecting the Nifty to maintain a positive bias and head towards 24,390 and 24,500 in the coming sessions, with immediate resistance seen around the 24,800 level while the 24,100 zone is expected to act as key support.
Bajaj Broking expects the Nifty to maintain a positive bias and head towards 24,390 and 24,500 in the coming sessions. The brokerage noted that Wednesday's gap area of 24,041-24,136 is likely to act as immediate support, while the index continues to form higher highs and higher lows on the daily chart. From a short-term perspective, the index is likely to head towards the key resistance area of 24,500-24,600 levels, being the confluence of the current month's high and the high of April 2026. On the downside, support is revised higher towards 23,800-24,000 levels, being the confluence of the 20 and 50-day EMAs and the bullish gap area of Monday. Oil prices made limited gains as trading resumed in Asia, with Brent crude up 0.6% at $84.29 a barrel after falling to a three-week low on Monday as U.S. President Donald Trump said he had held off on a fresh attack on Iran as a gesture of goodwill in peace talks. Market pricing continues to indicate that September's Federal Reserve meeting will bring an increase to interest rates, with Fed funds futures pricing an implied 65% probability of a 25-basis-point hike at the U.S. central bank's next two-day meeting ending on September 16.
