Sensex Surges 827 Points After Five-Day Slump, ICICI Bank Leads Market Rally - Read Now

BSE Sensex sharply rebounded on Monday after the long-lasting slide as it rose by 827.37 points to 80,229.53, which helped add more than Rs 3 lakh crore in market capitalization and Nifty50 surged 225.30 points to 24,406.10. The stock market rally was largely supported by a robust quarterly performance by ICICI Bank and softer global oil prices that were seen as a very encouraging backdrop for investors.

The rally was welcomed after a period when the Sensex and Nifty indices fell 8% from recent highs in September. Much of the previous decline was attributed to sustained foreign outflows, weaker corporate earnings, and rising interest in China's market, where lower valuations and stimulus from Beijing attracted capital flows.
 
ICICI Bank Leads the Rally Amid Strong Financial Sector Growth

The leading gainer at the front of this rally was ICICI Bank, which delivered better-than-expected Q2 earnings and enhanced investor sentiment within the financial sector. Major contributors from the rest included M&M, JSW Steel, Adani Ports, and Nestle India. Nifty PSU Bank index also gained 2% and was led by Bank of Baroda, SBI, and PNB. The banking sector remained an area of focus for investors, and notable performances by banking majors such as HDFC Bank provided more strength to the market's recovery.

Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, felt that the trend of "flight to quality" would be sustained. He noted that "Investors can benefit from polarised valuations, especially in financials with consistent fair valuations.".

The overall market, however, moved northward with the opening Nifty indices of Financial Services and IT going up and that of the Media and Metal sector following suit. Other mid and small cap indices are nearly flat Asian markets had an upbeat performance at the same time; in Japan, Nikkei 225 had a rise of 1.6 percent while the South Korean Kospi by 0.6 percent buoyed high as a result of an easy yen.

Falling crude oil prices also helped to alleviate market sentiment as Israel conducted a non-disruptive retaliatory strike against Iran. Worries about the energy sector were soothed as oil prices fell by over $3 per barrel. The ease in oil prices and lessened geopolitical tension provided some much-needed comfort, which helped stabilize world market structures.

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