Indian stock markets began the week on an optimistic note, with both the Sensex and Nifty showing significant gains in early trading. The positive sentiment is influenced by a combination of factors, including positive cues from Asian markets and specific stock performances, particularly in the power and financial sectors.
The Sensex, the benchmark index of the Bombay Stock Exchange (BSE), opened at 82,164.12, a rise of 443 points, or 0.52%. This surge reflects broad-based buying, especially in IT stocks, financials, and private banks. According to Trading Economics, the Sensex has increased by 4.58% since the beginning of 2025. Consumer goods also saw notable gains, with ITC leading the charge after strong March-quarter earnings.
The Nifty 50, the primary index of the National Stock Exchange (NSE), also started the day on a positive trajectory, opening at 24,990.85, up 137 points or 0.55%. The Nifty 50 comprises 50 of the most actively traded companies in India, spanning various sectors, and serves as a key indicator of the Indian stock market's overall health. Mirroring the Sensex, the Nifty closed the previous trading session firmly higher, driven by robust buying in the IT and FMCG sectors, settling at 24,853.15.
Banking stocks demonstrated early strength, with the Nifty Bank index starting at 55,790.35, a gain of 0.73%. The financial sector's positive performance is crucial for maintaining the overall bullish trend in the market.
Among the top gainers in the Sensex 30 pack were Power Grid, NTPC, and M&M, along with UltraTech Cement, ICICI Bank, and Tata Motors. Conversely, Eternal experienced a downturn, decreasing by 4% in the early trading hours.
NTPC Ltd's stock has shown a notable upward movement. The company's share price moved up by 0.94% from its previous close, trading at ₹344.60. The positive sentiment follows the announcement of a net profit of ₹7,897.14 crore for the March quarter of FY25, marking a nearly 22% increase supported by improved operational performance. The company has declared a final dividend of ₹3.35 per share. Various analyst recommendations suggest a positive outlook for NTPC, with target prices ranging from ₹430 to ₹495.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that the market has shown signs of a strong technical rebound. According to Chouhan, the market is comfortably trading above the 20-day simple moving average (SMA), a positive signal. He identified support levels for short-term traders at 24,600/80,900 and 24,450/80,500, with resistance around 25,000/82,300. A breakout above this resistance could potentially drive the market higher.
Global factors also contribute to the market's positive start. US President Donald Trump's decision to extend the deadline for imposing tariffs on the European Union to July 9 has eased investor concerns about immediate trade tensions. Asian markets have responded positively, with Japan's Nikkei and South Korea's Kospi showing gains.
Foreign Institutional Investors (FIIs) net bought shares worth ₹1,794.59 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹299.78 crore on May 23, indicating strong institutional support for the market.
Overall, the Indian stock market's current rally is supported by strong domestic cues, positive global signals, and robust buying in key sectors. Investors will likely keep a close watch on upcoming domestic and global economic data, as well as Q4 earnings announcements, to gauge the market's future direction.
