India’s benchmark indices, Sensex and Nifty started the fresh week in green after logging major losses last week.
The recovery follows a volatile week in which the benchmarks experienced their sharpest drop since June 2022, with the Nifty falling 10% from record highs, entering a technical correction.
At the time of writing, the Sensex had risen by 630 points or 0.81% to 78,671.75, while the Nifty was up by 199..50 points or 0.85% to 23,787.
Optimism was fueled by the U.S. Federal Reserve’s preferred inflation measure, which showed a slower-than-expected rise in consumer prices, boosting hopes for additional rate cuts in 2025.
With the initial surge, the indices look set to halt their five-straight session losing streak.
Stocks in focus in India
Most sectors traded positively, with major gains seen in Nifty Bank, Metal, and Realty, which rose by 0.8%, 1.2%, and 1.1%, respectively.
Major lenders, including HDFC Bank (NS:HDBK), ICICI Bank (NS:ICBK), SBI (NS:SBI), and Axis Bank (NS:AXBK) lifted the banking index.
In the metal segment, JSW Steel (NS:JSTL), Tata Steel (NS:TISC), Coal India (NS:COAL), and Vedanta (NS:VDAN) advanced by 1-2%.
Nifty IT also climbed nearly 1%, driven by strength in IT behemoths TCS (NS:TCS), Infosys (NS:INFY), HCL Tech (NS:HCLT), and Wipro (NS:WIPR).
The FMCG index recovered nearly 1%, led by Hindustan Unilever (NS:HLL) and supported by ITC (NS:ITC), Nestle (NS:NEST), and Varun Beverages.
In the Nifty 50, gains were led by Tata’s Trent (NS:TREN), HDFC Bank and Shriram Finance.
HDFC Bank’s share price jumped close to 2% as domestic brokerage firm Emkay Global maintained its bullish call on India’s largest private bank.
The brokerage has a “buy” rating on the stock with a target price of ₹2,100.
Asian peers in green
Asian stock markets opened on a strong note on Monday, buoyed by positive cues from Wall Street’s rally on Friday.
The Nikkei 225 rebounded, climbing 0.93% to 39,060 after six consecutive losing sessions.
The Hang Seng Index halted its two-session losing streak, supported by gains in technology stocks.
The CSI 300 reversed Friday’s losses, gaining 0.71% at the time of writing.
The Kospi surged over 1.5%, driven by Samsung Electronics (KS:005930) (+1.89%) and SK Hynix (+2.01%). However, LG Energy Solution fell 1.26%, and tech giants Naver and Kakao also saw declines.
The S&P/ASX 200 jumped 1.4% to 8,180.00, snapping a three-session losing streak.
Wall Street leads the way
Markets across Asia were taking cues from the rally seen in US stocks on Friday.
The Dow Jones Industrial Average rose 498.02 points, or 1.2%, to 42,840.26, adding to Thursday’s modest gain that marked the end of a ten-day losing streak.
The Nasdaq Composite jumped 199.83 points, or 1.0%, to 19,572.60, and the S&P 500 climbed 63.77 points, or 1.1%, to finish at 5,930.85.
Despite the strong Friday rally, the major indices posted weekly losses. The Dow fell 2.3%, the S&P 500 dropped 2.0%, and the Nasdaq declined 1.8%.
The gains were driven by investor optimism following the release of the Federal Reserve’s preferred inflation gauge, offering fresh insights into consumer price trends.