Indian benchmark indices, the BSE Sensex and Nifty 50, bounced back from their lows on Monday, entering positive territory by midday. At 2 PM, the Sensex had gained 172 points (0.21%) to reach 81,396, while the Nifty 50 rose 16 points (0.07%) to 24,870 as reported by Business Standard.
The recovery was driven by select gains in banking, financial, and consumer stocks, helping the markets regain momentum after a challenging start.
Out of the 30 stocks on the BSE Sensex, 10 traded in the green. HDFC Bank led the gains, advancing 3.20%, followed by Asian Paint, Tech Mahindra, Reliance Industries, and Nestle India. In contrast, Kotak Mahindra Bank was the biggest loser, dropping 4.80%. Other laggards included IndusInd Bank, Bajaj Finserv, UltraTech Cement, and Adani Ports & SEZ.
Meanwhile, 17 of the 50 stocks on the Nifty 50 posted gains. Bajaj Auto led with a 4.06% rise, followed by HDFC Bank, Asian Paint, Eicher Motors, and Tech Mahindra. On the losing side, Tata Consumer Products saw the steepest decline, falling 6.87%, while Kotak Mahindra Bank, BPCL, IndusInd Bank, and Bajaj Finserv also underperformed.
The performance across sectors was mixed. Auto stocks advanced, with the Auto index rising 0.42%, followed by financial services, up 0.16%. However, other sectoral indices were in the red. The Media index was the worst performer, falling 2.43%, while the Metal, Oil, and Private Bank indices each slipped over 1%. The IT, FMCG, Pharma, Realty, Healthcare, and Consumer Durables indices also recorded losses.
In the broader markets, the Nifty Midcap 100 and Nifty Smallcap 100 declined by 1.20% and 1.24%, respectively, reflecting weaker sentiment outside the large-cap space.
Friday's session ended on a positive note, with the Sensex snapping a three-day losing streak. It closed 218 points higher (0.27%) at 81,224.75, while the Nifty 50 rose 104.16 points (0.42%) to 24,854.05. The Sensex hit an intraday high of 81,391.15, and the Nifty peaked at 24,886.20 during the session.
Among sectors, the Nifty Private Bank index gained 1.9%, while both the Nifty Metal and Nifty Bank indices rose 1.57%. However, the Nifty IT index declined 1.47%, and the FMCG index slipped 0.51%. In broader market activity, the BSE MidCap index edged up 0.21%, though the SmallCap index fell 0.16%.
Asian markets traded slightly higher on Monday as investors digested China's interest rate cut. The People's Bank of China (PBOC) announced a 25-basis point cut in the one-year loan prime rate (LPR) to 3.1%. The five-year LPR was reduced to 3.6%.
Japan's Nikkei 225 rose 0.15%, while the broader Topix index declined 0.14%. South Korea's Kospi gained 0.68%, and the Kosdaq rose slightly by 0.05%. Australia's S&P/ASX 200 climbed 0.7%, indicating cautious optimism in the region.
Tech stocks lifted Wall Street on Friday, helping the Nasdaq close higher, while the S&P 500 and the Dow Jones posted modest gains. The Dow rose 36.86 points (0.09%) to 43,275.91, the S&P 500 gained 23.20 points (0.40%) to 5,864.67, and the Nasdaq climbed 115.94 points (0.63%) to 18,489.55. All three indices recorded their sixth consecutive week of gains, the longest winning streak since 2023.
European stocks also closed higher. The STOXX 600 index posted its second straight weekly gain, supported by a rally in tech stocks and positive sentiment from China's policy measures. Emerging market stocks also advanced, rising 1.73% to 1,154.72.
US Treasury yields fell on Friday after recent sharp increases. The 10-year Treasury yield dropped 2.1 basis points to 4.075%, while the two-year yield declined 3.7 basis points to 3.95%, as market participants adjusted to a less dovish Federal Reserve stance.
The dollar index fell 0.28% to 103.49, with the euro strengthening 0.3% to US$1.0864. Investors remained cautious amid mixed global economic signals and central bank interventions.
Oil prices registered their biggest weekly drop in a month due to concerns over Chinese demand and uncertainty in the Middle East. US crude fell 2.05% to US$69.22 per barrel, while Brent dropped 1.87% to US$73.06 per barrel.
Gold surged above the US$2,700 mark for the first time, driven by global uncertainties. Spot gold gained 1.01%, reaching US$2,719.75 an ounce, as investors sought safety in the precious metal.
Indian markets bounced back on Monday after having shed ground earlier in the day as strength in some banking and financial stocks compensated for losses. Yet, market sentiment was cautious, as sectoral indices traded lower across the board. The global market development rate cut by China and the positive US earnings signalled mixed news. Its performance will depend on further policy developments and corporate results over the coming weeks as investors navigate the uncertainty surrounding the economy.