Sensex reclaims 78,000 after 1,100-point rally, Nifty ends above 23,600 in strong bull run

Benchmark indices Sensex and Nifty50 surged on Monday, continuing their bullish momentum as strong foreign fund inflows and sector-wide gains fueled a market rally. The S&P BSE Sensex jumped 1,078.87 points to close at 77,984.38, reclaiming the 78,000-mark intraday, while the NSE Nifty50 climbed 323.55 points to end at 23,673.95. This marked the best single-day performance for Sensex in recent months.

The market’s bullish momentum was led by banking stocks, with Kotak Bank surging 4.63%, followed by NTPC (4.51%) and State Bank of India (3.75%). Other major gainers included Tech Mahindra (3.54%), Power Grid Corporation (3.27%), Bajaj Finance (1.92%), and Axis Bank (2.51%). Several blue-chip companies, including Reliance (2.06%), Larsen & Toubro (1.86%), HDFC Bank, Tata Motors, and TCS, also registered notable gains.

Analysts credited the foreign institutional investor (FII) inflows for driving market sentiment. On Friday, FIIs recorded a net inflow of ₹7,470 crore, while also increasing long positions in index futures. This shift boosted market confidence, pushing the long-short ratio to 31.8%, signaling growing optimism among investors.

Despite the overall bullish sentiment, a few stocks closed in the red. Titan declined by 2.73%, IndusInd Bank fell 2.52%, and Zomato slipped 2.04%. Other laggards included M&M (-0.83%), Bharti Airtel (-0.60%), and Nestle India (-0.10%).

Technical analysts cautioned that Nifty50 is now in an overbought zone, approaching its previous resistance level of 23,800. According to Aditya Gaggar, Director of Progressive Shares, the index may witness some pullback and correction, with 23,400 acting as a key support level.

Looking ahead, analysts expect volatility to rise as markets test new highs, with investors keeping an eye on upcoming macroeconomic indicators, global cues, and fund flows. For now, the bulls remain firmly in control, as Indian equity markets continue their record-breaking rally.