SENSEX reclaims 80,000 mark, NIFTY50 near day’s high led by HDFC Bank, Asian paints records sharpest single-day decline in over two years

Indian equity benchmark indices stabilised after an initial bout of volatility, and by midday, frontline indices were trading near the day’s high. The SENSEX has reclaimed its important psychological mark of 80,000, up by 0.70%. The NIFTY50 has advanced by 170 points, surpassing the 24,300 mark. However, the broader market indices were seen underperforming on Monday. The Nifty Midcap 100 and Smallcap 100 indices were down by 0.07% and 0.28%, respectively.

Nifty Bank emerged as the showstopper in the midday session, surging over 1% and reclaiming its 20-DMA. Meanwhile, the India VIX, a gauge of market volatility, has cooled off significantly from the day’s high.

Among the NIFTY50 index constituents, 33 stocks advanced while 17 declined. HDFC Bank (+30.60 pts), Infosys (+30.17 pts), and ICICI Bank (+28.48 pts) were the top contributors to the index rally. On the other hand, Asian Paints, the country’s leading paint maker, was a major drag, plunging nearly 8%. This marked Asian Paints’ sharpest single-day fall following its disappointing performance in the quarter ended September 2024.

On the sectoral front, most indices traded in the green, with Nifty IT (+1.61%) and Nifty Financial Services (+1.12%) leading the gains. On the other hand, Nifty Media (-0.63%) and Nifty Pharma (-0.49%) were among the top losers. Given the underperformance of the broader market indices, overall market breadth is tilted in favour of declines, with 1,331 stocks declining and 1,027 advancing. The question remains: is this rally sustainable, or merely a dead cat bounce? Much will depend on the performance of the financial services sector.