Market Wrap, Feb 9: SENSEX rises 485 pts, NIFTY50 ends at 25,867 as PSU Bank stocks rally; Nifty Smallcap 100 outshines, SBI top gainer

The Indian stock market closed with gains on Monday, February 9, driven by a strong rally in PSU bank stocks. Investor sentiment was further boosted following the India–US trade deal, while renewed foreign investor inflows added to the overall optimism.

As per the framework, the US will reduce reciprocal tariffs on India to 18% from 25%. The US has already removed the additional 25% punitive tariff which it imposed on India for buying Russian crude.

Meanwhile, driven by State Bank of India (7.6%), IndusInd Bank (2.76%) and Kotak Mahindra Bank (1.28%), Nifty Bank jumped 1% to close at 60,669.35 on Monday.

Shares of State Bank of India, the country's largest lender, clocked their best single-day gain in over five years on Monday after it reported strong December quarter earnings on Saturday. SBI shares surged as much as 6.62%, its biggest jump since February 2, 2021, to hit a fresh all-time high of ₹1,137 on NSE.

According to exchange data, on Friday, the foreign institutional investors (FIIs) bought shares worth ₹1,950.77 crore, while the domestic institutional investors (DIIs) sold equities worth ₹1,265.06 crore on a net basis.

Globally, in Asian markets, all the indices ended with gains on Monday. Tokyo's Nikkei 225 share index jumped as much as 5% to a record on Monday after Japanese Prime Minister Sanae Takaichi's governing party secured a two-thirds supermajority in a parliamentary election.

South Korea's KOSPI surged 3.94%, and the Shanghai Composite ended with 1.39% gains, while Hong Kong's Hang Seng jumped 1.7% and Japan's Nikkei closed 4.12% higher.

Here are the key developments of Monday’s session that you need to know

As many as 3,305 stocks traded on the NSE on Monday. Out of this, only 2,485 advanced, and 728 declined, while 92 scrips remained unchanged.

This indicated that the market breadth was in favour of advances.

A total of 69 stocks hit their 52-week highs, while 61 stocks touched their one-year lows. Besides, 110 stocks hit their upper circuit limits, and 51 touched their lower circuit bands on Monday.

The market capitalisation of NSE-listed companies stood at ₹471.43 lakh crore by the end of the session.

The volatility index India VIX rose 2.09% to end at 12.19 levels.

Driven by Kalyan Jewellers (14.66%), Godrej Properties (6.01%) and Voltas (4.67%), the Nifty Midcap 100 index closed at 60,001.30, surging 1.58%.

The Nifty Smallcap 100 index gained 2.64% to close at 17,385.90, supported by a strong rally in BEML (8.75%), PCBL Chemicals (8.73%) and Deepak Fertilizers and Petrochemicals Corporation (8.44%).

All the sectors ended the session in green, with Nifty Media taking the lead, rising 4.37%. Nifty Consumer Durables (3.6%), Nifty PSU Bank (3.34%), Nifty Realty (2.61%) and Nifty Metal (1.56%) were the other top gainers.  

As many as 34 stocks on the NIFTY50 index advanced on Monday, while 16 closed in red.

State Bank of India was the most contributing stock, soaring 7.63%, followed by Shriram Finance (6.03%), Grasim Industries (3.11%), Titan Company (3.04%) and Dr Reddy’s Laboratories (2.8%).

On the flip side, Max Healthcare (-2.82%), NTPC (-1.05%), ITC (-0.95%), ONGC (-0.84%) and ICICI Bank (-0.78%) were the top losing stocks on the 50-share index.