Sensex Ends 5-Session Losing Streak with a 499-Point Gain

After a significant drop of approximately 4,100 points last week, the Sensex made a remarkable recovery on Monday, closing at 78,540 points with a 499-point increase. Notably, 21 out of the 30 index constituents showed gains. Similarly, the NSE's Nifty rose by 166 points, ending the day at 23,753.

Vikram Kasat, Head of Advisory at Prabhudas Lilladher, attributed Monday's recovery to gains in financials and IT stocks. He noted that the positive sentiment was influenced by softer US inflation data, which boosted regional markets. Investors are now keenly awaiting the RBI's forthcoming monetary policy and the Union Budget 2025, hoping for policy measures that could further support economic growth and market stability.

Domestic Funds Drive the Rally

The day's gains were largely driven by strong buying from domestic funds, which recorded a net inflow of Rs 2,228 crore. In contrast, foreign funds remained net sellers at Rs 169 crore, according to BSE data. Among the Sensex constituents, HDFC Bank, Reliance Industries, ITC, and ICICI Bank made the most significant contributions to the day's gain. However, Zomato, which was included in the Sensex on Monday, closed sharply lower, down 2.8%.

The rally added approximately Rs 76,000 crore to investors' wealth, providing a much-needed boost after last week's substantial losses.