The Indian stock market witnessed a robust start to the week on Monday, with the Sensex rallying 1,233 points to close at 75,693. This significant gain, representing a 1.3% increase, pushed the benchmark index past the 75,000 mark for the first time in nearly two months. Market sentiment was primarily buoyed by a stellar performance from Reliance Industries (RIL), which saw its stock price surge by nearly 12% following the announcement of strong second-quarter financial results.
Reliance Industries proved to be the primary engine of the day's market momentum. The company’s stock gain contributed approximately 750 points to the Sensex, accounting for more than half of the total index increase. According to exchange data, the 11.6% rise in RIL shares marked the company's most significant single-session jump since April 7, 2020. This surge translated into an addition of Rs 1.8 lakh crore to the company's market capitalization in a single trading day. Financial analysts noted that this represents the largest single-session gain for any company in market history, excluding extraordinary events such as corporate mergers.
The positive sentiment extended to the broader market, with the National Stock Exchange’s Nifty closing 388 points higher at 23,441, a gain of 1.7%. Data from the Bombay Stock Exchange revealed that 23 out of the 30 stocks included in the Sensex finished the day in the green. Across the board, investor wealth saw an expansion of approximately Rs 8 lakh crore, bringing the total market capitalization of all BSE-listed companies to Rs 482.3 lakh crore.
Market participants attributed the upbeat atmosphere to a combination of strong corporate earnings and encouraging macroeconomic indicators. Vinod Nair, head of research at Geojit Investments, highlighted that healthy festive demand, reflected in October passenger-vehicle sales growth, and rising gross GST collections underscored the resilience of domestic consumption. Additionally, global factors, including softer crude oil prices and reduced geopolitical tensions, provided a supportive backdrop for the trading session.
Further fueling the optimism were reports suggesting that the Securities and Exchange Board of India (SEBI) had communicated to the government regarding the potential abolition of long-term capital gains tax for foreign investors. This regulatory news, combined with renewed interest in Indian equities, drew foreign capital into the market. NSE data showed that foreign funds were net buyers to the tune of Rs 3,115 crore, while domestic funds acted as net sellers, offloading Rs 392 crore during the session.
As the market looks ahead, there is growing speculation among analysts that Indian indices may regain their attractiveness to foreign fund managers, potentially marking a shift after nearly two years of fluctuation. While the AI sector faces headwinds globally, the domestic performance remains a focal point for investors. International markets also showed positive movement, with US stocks rising amid declining oil prices and anticipation surrounding the midterm elections.
This rally arrives at a time when analysts are closely monitoring both domestic economic data and global diplomatic developments. With the Sensex having reclaimed the 75,000 level, market observers are now watching for sustained stability in the coming weeks. The combination of strong quarterly corporate performance and potentially favorable shifts in foreign investment taxation suggests a dynamic period for Dalal Street as it moves toward the end of the year.
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