Financial Stocks Rally: Bank Nifty Hits New High as Market Closes in Positive Territory
The Indian stock market started the week on a positive note with the Bank Nifty hitting a new all-time high of 57,000 on Monday, signaling strong momentum in the banking sector.
Mumbai: The Indian stock market started the week on a positive note with the Bank Nifty hitting a new all-time high of 57,000 on Monday, signaling strong momentum in the banking sector. The broader market also performed well, with the Sensex rising by 256.22 points (0.31%) to close at 82,445.21 and the Nifty gaining 100.15 points (0.40%) to finish at 25,103.20.
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Bank Nifty Surges to Record Levels
Nifty Bank clocked a fresh record high of 57,049, breaking out decisively from a month-long ascending triangle formation. Analysts from Samco Securities noted this breakthrough followed multiple failed attempts and now clears previous resistance zones with strong conviction.
Midcap and Smallcap Stocks Rally
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Midcap and smallcap stocks outperformed largecaps on Monday. The Nifty Midcap 100 index rose 1.13% to 59,674.95, while the Nifty Smallcap 100 gained 1.57%, closing at 18,873.40. This broad-based rally reflects growing investor confidence across market segments.
Sectoral Performance Highlights
Several key sectors closed in positive territory, including auto, IT, PSU banks, financial services, pharma, metal, and media. However, the Nifty Realty index was the only sector to end in the red.
Top Gainers and Losers
Among Sensex stocks, Kotak Mahindra Bank, Bajaj Finance, Axis Bank, Power Grid, IndusInd Bank, Maruti Suzuki, Bajaj Finserv, NTPC, TCS, and Tata Motors were top gainers. On the other hand, Zomato (Eternal), ICICI Bank, Titan, Mahindra & Mahindra (M&M), and Tata Steel recorded losses.
Positive Market Drivers
The rally was fueled by supportive monetary policies from the Reserve Bank of India (RBI), including aggressive rate and Cash Reserve Ratio (CRR) cuts. These measures have bolstered liquidity and investor sentiment, especially benefiting midcap stocks.
Global cues also contributed to optimism, with positive US jobs data and renewed hopes for progress in US-China trade talks lifting worldwide market sentiment. Additionally, foreign institutional investors (FIIs) showed increased inflows into large-cap stocks, adding to market momentum.
Technical Outlook
Market experts highlighted that the Nifty Bank remains firmly above key moving averages, indicating sustained strength. The daily Relative Strength Index (RSI) at 69 and weekly RSI at 68 suggest robust momentum without reaching overbought levels. A recent bullish divergence on the RSI further supports the positive outlook
