According to market experts, Nifty’s crucial support level is now anticipated at 23,250. (AI image)

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, surged in trade on Monday to close in green. While BSE Sensex closed almost 500 points up, Nifty50 was above 23,750. BSE Sensex ended the day at 78,540.17, up 499 points or 0.64%. Nifty50 closed at 23,753.45, up 166 points or 0.70%.
BSE Sensex and Nifty50 advanced on Monday, with major contributions from HDFC Bank and Reliance Industries, alongside metal stocks, following the trend of Asian markets after US inflation data came in below expectations.
Both indices experienced approximately 5% decline in the previous week, marking their poorest performance since June 2022, influenced by the US Federal Reserve’s revised forecast of two rate cuts in 2025 instead of four, alongside continuous foreign outflows totalling $1.86 billion.
During Monday’s trading, twelve out of 13 major sectors showed positive movement. The financial sector grew 0.8%, with HDFC Bank leading at 1.7%. Reliance Industries, holding significant weight in both indices, increased by 1.4%.
According to market analysts, the recent decline in benchmark indices has resulted in more attractive valuations for large-cap shares, encouraging investors to make purchases in these relatively stable options.
“We have seen over the last two years that whenever the Nifty drops below the 200-day moving average, like it did on Friday, markets have been able to stage an immediate bounce back, helped by dip buying,” Kranthi Bathini, director of equity strategy at WealthMills Securities was quoted as saying by Reuters.
The metal sector increased 0.9% following the Indian trade authority’s initiation of a safeguard investigation into steel imports. Tata Steel rose 0.7% and JSW Steel increased 2.2%, with Investec suggesting these companies could benefit significantly from potential safeguard duties.
Whilst smaller companies declined 0.1%, mid-sized companies showed a 0.3% increase. Asian markets broadly rallied after Friday’s US personal consumption expenditure data showed a 0.1% increase in November, down from October’s 0.2%.
ITC shares climbed 2.1%, leading consumer stocks up by 1%, after the finance minister clarified that the GST council had not decided on tobacco tax rate changes.