Markets staged a strong recovery on Monday, with the Sensex surging 442.61 points or 0.54 per cent to close at 82,200.34 and the Nifty 50 gaining 122.30 points or 0.49 per cent to end at 25,090.70. The rally came after a volatile trading session that saw the Nifty swing from an intraday low of 24,882 to a high of 25,079.
The market’s recovery was primarily driven by strong performance from banking majors, with ICICI Bank leading the charge with a 2.71 per cent gain to close at ₹1,464.50, while HDFC Bank rose 2.25 per cent to ₹2,001.50. The banking sector’s outperformance came amid positive quarterly earnings from these heavyweight institutions.
“Positive results from banking majors supported the market to rebound after many days of consolidation. The market remains highly reactive to earnings, indicating that investors remain focused on the earnings front to aid valuation,” said Vinod Nair, Head of Research at Geojit Investments Limited.
Among the top gainers on the Nifty 50, Eternal emerged as the standout performer, surging 7.50 per cent to ₹276.50. Other significant gainers included Mahindra & Mahindra, which rose 1.69 per cent to ₹3,246.30, and HDFC Life Insurance, which gained 1.68 per cent to ₹751.90.
The day’s losers were led by Reliance Industries, which fell 3.24 per cent to ₹1,428.20 amid concerns over softness in its oil-to-chemicals and retail segments. Wipro declined 2.27 per cent to ₹260.90, while IndusInd Bank dropped 2.19 per cent to ₹851.00. Eicher Motors and HCL Technologies also closed in the red, falling 1.17 per cent and 1.16 per cent respectively.
Sectoral performance was mixed, with Financial Services leading the gains with a 1.62 per cent rise, followed by Banking, which advanced 1.19 per cent. The Nifty Midcap 100 outperformed with a 0.62 per cent gain to 59,468.35, while broader market sentiment remained cautious.
“The Nifty remained volatile during the day as traders awaited more clarity on the US-India deals. During the session, Nifty found support around the 50 EMA on the daily timeframe, leading to an intraday recovery,” noted Rupak De, Senior Technical Analyst at LKP Securities.
Market breadth across the BSE showed 1,959 advancing stocks against 2,188 declining ones, with 180 stocks remaining unchanged. A total of 161 stocks hit their 52-week highs, while 52 touched their 52-week lows.
The volatility was partly attributed to ongoing uncertainties surrounding trade negotiations between the US and India, with investors closely monitoring developments for further market direction.
“Markets started the week on a volatile note but managed to end in the green. The initial reaction to earnings from heavyweights like Reliance, ICICI Bank, and HDFC Bank led to sharp swings,” said Ajit Mishra, SVP Research at Religare Broking Ltd.
Technical analysts highlighted the significance of the day’s recovery. “After an early morning intraday selloff, the market took support near 24,900/81500 and bounced back sharply. From the day’s lowest point, the market recovered over 200/700 points,” observed Shrikant Chouhan, Head Equity Research at Kotak Securities.
The manufacturing segment gained support from government initiatives, with officials reviewing the scope of expanding infrastructure spending to support growth. However, sectors like Oil & Gas, Consumer Goods, and IT lagged behind the broader recovery.
Currency markets saw the rupee trading weak at 86.25, down 0.18 per cent, as focus shifted to Federal Reserve Chair Powell’s upcoming speech. “Rupee traded weak by 0.18 per cent at 86.25 as focus shifts to this week’s Fed Chair Powell’s speech, which is expected to drive volatility in the dollar index,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
In the commodities space, gold remained elevated amid weak dollar conditions and economic moderation signs. “Gold traded positive amid a weak dollar and signs of economic moderation, which increased the probability of a rate cut by the US Fed,” Trivedi added.
Looking ahead, market participants will focus on continued earnings announcements and developments in US-India trade discussions. The India VIX declined 1.67 per cent to 11.20, reflecting some easing of market fears, though caution persists among investors.
Published on July 21, 2025
