MUMBAI: Financials propelled India’s benchmark equity indexes higher on Monday on the back of positive global cues, bargain buying and stock-specific moves.
The Nifty 50 gained 0.50% to 22,508.75, while the Sensex closed 0.46% higher at 74,169.95. Financials contributed to about two-thirds of the Nifty’s rise.
Standard Chartered said it remained “overweight” on Indian equities on the expectations of an economic and earnings recovery and better valuations after the recent drop.
Indian benchmarks have fallen about 14% from their record highs of late-September as slowing earnings growth momentum and US tariff worries triggered $28 billion in foreign outflows.
With the threat of US reciprocal tariffs looming, analysts expect the market to remain volatile in the near-term.
Nine of the 13 major sectors rose on the day, while the broader mid- and small-caps gained 0.7% and 0.5%, respectively.
Tarun Singh, managing director at Highbrow Securities, said this is the right time for investors to enter the market and rejig their portfolios.
“Valuations have turned favourable in segments of large-caps like financials and they will be the first to lead the recovery from the recent drop,” he said.
Financials advanced 1%, with private lenders ICICI Bank and Axis Bank rising 1.5% and 2.4%, respectively.
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