Equity benchmarks opened the week on a firm note, supported by a sharp resurgence in information-technology counters. The S&P BSE Sensex gained 116 points to reach 85,348 in early trade, while the NSE Nifty50 advanced 42 points to trade near 26,110, extending the underlying positive bias seen in recent sessions.
The broader market also participated in the upmove, with most mid- and small-cap indices opening in the green and reinforcing the strong early sentiment. Much of the momentum came from IT heavyweights: Tech Mahindra and Infosys surged more than 2% each, while HCLTech and Wipro also posted notable gains. Eicher Motors joined the list of early outperformers, contributing additional support to the indices.
Not all sectors shared the early optimism. Eternal, BEL, M&M, TMPV and Power Grid were among the weaker performers in the opening trade, registering mild declines and capping some of the benchmark’s upside.
According to Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market’s setup today is considerably healthier compared to its failed breakout attempts in September 2024. He pointed to three major reasons for past hesitation—foreign institutional selling, uncertainty surrounding the US–India trade agreement, and unclear FY27 earnings visibility. Those headwinds, he said, have now eased.
He noted that earnings for FY27 are projected to grow more than 15%, offering a solid fundamental base for a fresh rally toward new highs. He added that weakness in the global AI trade may redirect foreign institutional investors toward India, while the long-pending US–India trade deal could materialise “anytime.” His broad guidance: favour large caps and strong midcaps, as small caps still look significantly stretched.
The upbeat tone was echoed by Anand James, Chief Market Strategist at Geojit. He argued that Friday’s round of profit-booking has not damaged the broader trajectory. With Nifty closing above a key monthly breakout level, he believes the conditions remain favourable for an extension of the uptrend toward the 26,550 zone. However, he cautioned that if the index cannot hold above the 26,028–25,980 band, momentum may begin to fade. A deeper corrective phase would come into play only if 25,826 is breached decisively.
While IT stocks have led the current rebound, analysts widely agree that the next major trigger for the market will depend on clearer earnings forecasts and firm indications of when Washington and New Delhi will finalise their delayed bilateral trade agreement.
