The Indian stock market opened on a strong note on Monday, with both benchmark indices rallying significantly. The BSE Sensex surged over 1,100 points in early trade to reach 80,272.34, marking a 1.46% increase. Similarly, the Nifty50 crossed the 24,250 mark, trading at 24,269.00, up 362 points or 1.51%.
This comes after a notable recovery on Friday when the Sensex surged 2.54%, surpassing the 79,000 mark. The rally was supported by broad-based buying across sectors, with investors finding value in stocks that had seen price corrections.
The weekend also witnessed significant political developments, particularly in Maharashtra. The ruling ‘Mahayuti’ alliance achieved a landslide victory, securing 230 of the 288 Assembly seats. The BJP made history by winning 132 seats, marking its highest tally since 1990 and becoming the first party in the coalition era to emerge as the single-largest party in every region of the state.
These political results are expected to influence market sentiment this week, alongside other key factors such as the outcome of elections in Jharkhand.
Investors are keepoing a close watch on upcoming economic indicators, including GDP growth figures and infrastructure data. Foreign institutional investor (FII) activity remains a focal point, as FIIs have been consistent sellers in recent sessions. On Friday, FIIs were net sellers of ₹1,278 crore, while domestic institutional investors (DIIs) stepped in with purchases worth ₹1,722 crore. The FIIs’ net short positions reduced from ₹2.01 lakh crore on Thursday to ₹1.54 lakh crore on Friday, signaling some easing in selling pressure.
Additionally, the Parliament’s Winter Session begins today, with heightened attention on developments involving the Adani Group following Gautam Adani’s US indictment.
Globally, US markets closed higher on Friday, with all three major indices posting weekly gains. Positive economic indicators in the US bolstered investor confidence, while the nomination of Scott Bessent as Treasury Secretary by Donald Trump added to the optimism.
In the energy market, crude oil prices remain near their two-week highs, having surged 6% last week. Escalating geopolitical tensions involving Russia and Iran have raised concerns over potential disruptions in oil supply, further driving prices upward. As markets navigate a mix of political and economic cues this week, investors are expected to tread cautiously. With the combination of strong political developments in Maharashtra, critical economic data, and global factors at play, market volatility could persist in the near term.
