Sensex rallies on foreign fund inflows, firm global trends

Benchmark Sensex jumped by 638 points while the broader Nifty closed above 26,100 on Monday following heavy buying in IT, auto and metal shares amid foreign fund inflows and a rally in global markets on hopes of further rate cuts by the US Federal Reserve. Building on the previous session’s rally, the 30-share BSE Sensex jumped 638.12 points or 0.75 per cent to settle at 85,567.48. During the day, it surged 671.97 points or 0.79 per cent to 85,601.33.

The 50-share NSE Nifty climbed 206 points or 0.79 per cent to close above the 26,100 mark at 26,172.40. Among Sensex firms, Trent rose the most by 3.56 per cent. IT shares Infosys jumped 3.06 per cent, Tech Mahindra by 2.09 per cent, HCL Tech by 1.67 per cent and TCS by 1.28 per cent. Bharti Airtel, Bharat Electronics, Tata Motors, Reliance and Maruti were among the major movers.

However, State Bank of India fell the most by 0.6 per cent, followed by Kotak Mahindra Bank, Larsen and Toubro and Titan. “Indian markets extended their year-end rally, supported by strong liquidity and global cues, as expectations of further Fed easing in 2026 continue to underpin growth. FIIs turned net buyers, reinforcing the positive tone, with IT and metals leading gains,” Vinod Nair, Head of Research, Geojit Investments Limited, said.The BSE smallcap gauge jumped 1.12 per cent, while midcap index climbed 0.86 per cent. All sectoral indices ended higher. IT surged 1.99 per cent, BSE Focused IT by 1.72 per cent, capital goods by 1.65 per cent, industrials by 1.33 per cent, metal by 1.32 per cent and commodities by 1.05 per cent.

A total of 2,796 stocks advanced while 1,514 declined and 191 remained unchanged on the BSE “A stabilising USD-INR exchange rate, coupled with data showing foreign portfolio investors turning net buyers of domestic equities over the past few sessions, triggered broad-based buying and short covering across derivative segments”.

“Global risk appetite also remained firm, supported by expectations of further monetary policy easing by the US Federal Reserve, which helped sustain the risk-on momentum across global markets,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

In Asian markets, South Korea’s Kospi jumped over 2 per cent, while Japan’s Nikkei 225 index climbed nearly 2 per cent. Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index also settled in positive territory. European markets were trading on a mixed note. US markets ended higher on Friday.

Foreign Institutional Investors (FIIs) bought equities worth INR1,830.89 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs) also bought equities worth INR 5,722.89 crore in the previous trade.Brent crude, the global oil benchmark, climbed 0.86 per cent to $60.99 per barrel.On Friday, the Sensex jumped 447.55 points or 0.53 per cent to settle at 84,929.36. The Nifty climbed 150.85 points or 0.58 per cent to 25,966.40.