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Sensex, Nifty Surge 0.75%: How IT and Metal Stocks Fueled the Rally

Indian stock markets closed strongly on Monday, with both the Sensex and Nifty gaining 0.75%. The rally was primarily driven by robust buying in information technology and metal stocks. Market experts pointed to a confirmed technical breakout and optimism surrounding the India-New Zealand free trade agreement as key positive drivers. However, analysts also cautioned that geopolitical uncertainties and crude oil price volatility remain areas of concern for investors.

Key Points: Sensex Nifty Gain 0.75% on IT Metal Stocks India NZ FTA

  • Benchmark indices Sensex and Nifty both climbed 0.75%, extending previous session gains
  • Buying in IT and metal sectors led the rally, with Nifty IT up 2.06%
  • Positive sentiment was boosted by optimism around the India-New Zealand free trade agreement
  • Broader market participated as SmallCap and MidCap indices also posted strong gains
  • Analysts note a confirmed technical breakout but warn of persistent geopolitical and crude oil risks
2 min read

Sensex, Nifty extend gains, climb 0.75 pc each

Sensex and Nifty rose 0.75% each, driven by IT and metal stocks. Analysts cite a bullish breakout pattern and optimism around the India-New Zealand FTA.

"As long as the index holds above the 25,950–26,000 support band, the broader structure remains bullish, with a decisive close above 26,200 opening the path toward 26,300–26,500. – Market Experts"

Mumbai, Dec 22

Indian stock markets ended on a strong note on Monday, extending the gains seen in the previous session, even as global cues remained mixed.

Buying interest in information technology and metal stocks helped push the benchmark indices higher.

Positive sentiment was also supported by optimism around the signing of the India–New Zealand free trade agreement, which boosted investor confidence.

The Sensex closed at 85,567.48, rising by 638.12 points, or 0.75 per cent. Similarly, the Nifty settled at 26,161.60, up 195.20 points, marking a gain of 0.75 per cent.

“Nifty closed the session on a strong note after confirming a breakout above the 26,050–26,100 zone, validating a double-bottom pattern and reinforcing the ongoing daily uptrend,” experts said.

“As long as the index holds above the 25,950–26,000 support band, the broader structure remains bullish, with a decisive close above 26,200 opening the path toward 26,300–26,500,” they added.

On the BSE, shares of Trent, Infosys and Bharti Airtel were among the top gainers -- reflecting strong buying interest in these stocks.

On the other hand, State Bank of India, Kotak Mahindra Bank and Larsen & Toubro weighed on the index and ended as the top laggards.

On the NSE, Trent, Shriram Finance and Wipro emerged as the top performers. Meanwhile, HDFC Life Insurance, Tata Consumer Products and State Bank of India were the major stocks that dragged the index lower.

The broader market also participated in the rally. The Nifty SmallCap 100 index jumped 1.17 per cent, while the Nifty MidCap 100 index gained 0.84 per cent.

Sector-wise, the IT sector was the biggest outperformer, with the Nifty IT index rising 2.06 per cent.

Metal stocks also saw strong gains, with the Nifty Metal index climbing 1.41 per cent.

In contrast, Nifty Consumer Durables was the only sector to end in the red, slipping marginally by 0.16 per cent.

Analysts said that the market closed firmly in positive territory, supported by sectoral strength and improving investor sentiment.

“However, caution persists amid limited progress on trade negotiations, geopolitical uncertainties, and crude price volatility," market watchers stated.

- IANS

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Reader Comments

P
Priya S
Finally some green on the screen! My SIPs in Infosys and a midcap fund are doing well today. But the article rightly points out the caution needed. Geopolitical issues and crude prices can change things overnight. Let's hope for stability.
R
Rohit P
Sensex at 85.5k is fantastic! But I have a respectful criticism: these gains feel very concentrated in specific sectors like IT and Metals. What about banking? SBI dragging down is a concern for many common investors who hold it for dividends.
S
Sarah B
Watching from abroad, it's impressive to see Indian markets hold strong amid mixed global cues. The double-bottom pattern breakout the experts mention sounds technically very positive. The small and midcap rally is encouraging for broader participation.
V
Vikram M
Bhai, Trent ka stock toh rocket hai aaj! But yeh consumer durables sector ne kuch kamal kiya hai, only one in red. Maybe people are saving for bigger purchases post-budget? Overall, accha din tha market ka. 🚀
K
Kavya N
As a new investor, this is reassuring. The article explains the support and resistance levels well. Holding above 26,000 is key. I'm learning that patience and not panicking on minor dips is important. Long term vision zaroori hai.

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