Investors gain ₹5T as markets rebound: What's behind today's rally
What's the story
The Indian stock market witnessed a strong rally on Monday, with the Sensex and Nifty 50 ending their three-session losing streak. The Sensex surged by 555 points or 0.7% to close at 80,364 while the Nifty 50 gained 198 points or to settle at 24,625. The total market capitalization of BSE-listed companies jumped to nearly ₹449 lakh crore today from below ₹444 lakh crore in the previous session, an increase of ₹5 lakh crore in investor wealth.
Market performance
Mid and small-cap stocks outperform larger indices
In a notable market performance, mid and small-cap stocks outperformed the larger indices. The BSE Midcap index surged by an impressive 1.64%, while the Smallcap index also posted gains of 1.49%. This broad-based rally across market segments contributed to the overall positive sentiment in the Indian stock market on Monday.
Economic outlook
Q1 GDP growth exceeds expectations
The Indian stock market's positive performance was also aided by improved market sentiment after India's Q1 GDP growth exceeded expectations. Vinod Nair, Head of Research at Geojit Investments Limited, said "India's Q1 GDP growth of 7.8% has reinforced investor confidence in the economy's resilience amid global uncertainties." He added that expectations of GST rationalization at the upcoming council meeting continue to bolster sentiment and support discretionary consumption.
Market movers
Nifty 50's top gainers and losers
In the Nifty 50 index, Bajaj Auto (up 4.01%), Mahindra & Mahindra (up 3.52%), and Hero MotoCorp (up 3.18%) emerged as top gainers. On the other hand, Sun Pharma (down 1.91%), ITC (down 1.03%), and Hindustan Unilever (down 0.56%) were among the biggest losers of the day in this key market index.