Indian equity markets opened the week on a strong note, with both the Sensex and Nifty edging higher in early trade on Monday, buoyed by broad-based buying across key sectors. The rally was led primarily by auto and FMCG stocks, reflecting renewed investor confidence and positive global cues.
As of the latest data, the Nifty 50 was trading above the 24,400 mark, up 0.32% at 24,411.75, while the S&P BSE Sensex rose by 0.45% to 80,862.05. Both indices have built on last week’s gains, with the Sensex and Nifty having risen 1.6% and 1.2% respectively in the previous week.
The market’s momentum is being supported by continued foreign institutional investor (FII) inflows and improving sentiment in global markets.
Auto and FMCG Sectors Drive Rally
Auto stocks emerged as top performers, with the Nifty Auto index surging nearly 2% in early trade. The sector’s rally was fueled by robust April sales numbers from leading automakers, including Maruti Suzuki and TVS Motor, both of which reported strong year-on-year growth.
Investors are optimistic about sustained demand in the auto sector as the new financial year progresses.
FMCG stocks also contributed significantly to the market’s upward move, supported by expectations of steady rural demand and resilient consumption trends. The sector’s defensive qualities have attracted buying interest amid ongoing global uncertainties.
Broader Market Participation
The rally was broad-based, with gains seen across large-cap and select mid-cap stocks. Sectors such as IT, media, and oil & gas also traded higher, while some pressure was observed in power, metal, and realty stocks.
The BSE Midcap index was slightly lower, while the Smallcap index traded flat, indicating selective participation outside the blue-chip universe.
Key Stocks and Earnings in Focus
Among notable movers, Adani Ports, Tata Motors, and Asian Paints led the gainers, while SBI and Kotak Mahindra Bank were in focus following their quarterly results. The market is also closely tracking earnings from Mahindra & Mahindra, Indian Hotels, and Coforge, which are expected to set the tone for sectoral trends this week..
Global Cues and Institutional Flows
Positive sentiment from Wall Street, where US indices logged their second consecutive week of gains, has bolstered risk appetite in Indian markets. FIIs remained net buyers for the twelfth consecutive session, further underpinning the rally. However, investors remain watchful of global trade tensions, US Fed policy signals, and geopolitical developments that could influence market direction.