The S&P BSE Sensex rose 160.81 points, or 0.20%, at the open to 80,871.57, while the NSE Nifty 50 advanced 49.95 points, or 0.20%, to 24,790.95. At 9:35 AM, Sensex traded 253 or 0.31% higher at 80,964 whereas Nifty50 rose 83 pts of 0.34% to 24,824.
On the 30-share Sensex, Tata Steel, Mahindra & Mahindra, Tata Motors, Adani Ports and NTPC led the advance, rising between 0.7% and 2.2%.
Across sectors, the Nifty Auto index gained 0.45%, FMCG edged up 0.07%, IT added 0.31%, Metal climbed 0.42%, and PSU Bank rose 0.28%.
The Sensex and Nifty had advanced 1.1% and 1.3%, respectively, last week after the GST Council cut levies on everyday goods to spur consumption.
Broader markets also firmed Monday, with both mid-cap and small-cap indices up about 0.3%.
Expert views
Markets are likely to remain sensitive to global trade headlines, according to Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, who said that “the heightened uncertainty surrounding the U.S.-India trade relations will continue to weigh on markets. President Trump’s recent statements regarding the ‘special U.S.-India ties’ and that ‘there is nothing to worry’ indicate improvement in the strained relationship. However, Trump’s comments on a second round of sanctions against Russia and Peter Navarro’s continuing tirade against India are negative factors.”
Vijayakumar said that speculation over possible curbs on India’s IT exports, despite services trade so far escaping reciprocal tariffs, could also unsettle investors. “These concerns will continue to influence the market which got a morale boost from the GST reforms. The euphoria from GST reform was short-lived since the market had already partly discounted the GST rate cuts. Post-September 22nd, when the new GST rates come into effect, there will be huge spurt in demand, particularly for automobiles and consumer durables. This has the potential to lift the market sentiments.”
The Nifty’s near-term trajectory remains finely balanced, said Anand James, Chief Market Strategist at Geojit Investments. James observed that “the turn lower last week, from the 50-day SMA, appeared to signal that the recovery push may be over. But, the close above the 20-day SMA on Friday, after the initial scare, suggests that there is enough risk appetite to push higher.”
James noted that confirmation would come only if the index moves past 24,870 to target levels beyond 25,400. “Alternatively, inability to close above 24,700 or a direct fall again below 24,500 could re-expose 24,075, the 200-day SMA, as well as the Fibonacci extension target of 23,860,” he said, while adding that such an outcome looks less likely given the muted VIX, which declined steadily last week to end near 10.78 on Friday.
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