Sensex up 590 points, Nifty ends above 25,100 led by financials, IT

Stock market news: Benchmark indices closed Monday on a higher note amid positive global momentum as inevstors await the domestic inflation print for clues about the timing of a possible rate cut.

At close, the 30-share S&P BSE Sensex was trading 591.69 points higher at 81,973.05 while the broader NSE Nifty 50 index was trading 163.7 points higher at 25,127.95.

 This uptick comes after a challenging two weeks, during which both benchmarks fell approximately 5 per cent due to concerns over escalating tensions in the Middle East, slowing corporate earnings, and foreign outflows.

On the day, ten out of thirteen major sub-sector indexes showed gains. Notably, the financials sector and banking stocks, which hold significant weight in the Nifty 50, experienced increases of 1 per cent and 1.3 per cent, respectively. Despite these gains, both sectors had previously dropped by 5.2 per cent and 4.9 per cent over the past fortnight.

Analysts noted that investors are reallocating funds to financial stocks following recent underperformance and are anticipating no adverse surprises as the focus shifts towards upcoming earnings reports.

Among the day's top performers, HDFC Bank saw a 2.3 per cent increase, positioning it as a key contributor to the benchmark’s rise. The bank is set to release its September-quarter earnings report this week.

Wipro also stood out, soaring 4 per cent after announcing plans to issue bonus shares, which in turn propelled the IT index up by 1.3 per cent.

In another notable development, Larsen and Toubro (L&T) surged 2 per cent after JP Morgan initiated coverage with an "overweight" rating, citing the company's strong positioning to capitalize on capital expenditure cycles in both India and the Middle East.

Conversely, Avenue Supermarts, the operator of the DMart retail chain, saw its shares plummet 8.5 per cent following the announcement of its slowest revenue growth in four years for the September quarter.

Attention is now turning to the domestic inflation data for September, set to be released after market close. Analysts expect the figures to exceed the Reserve Bank of India’s target, which could provide important clues regarding the timing of potential rate cuts. Last week, the RBI shifted its policy stance to "neutral," indicating a willingness to lower borrowing costs as early as December.