Market Rebounds as Bulls Regain Control on Dalal Street
Indian equity markets closed higher on Monday, November 10, with benchmark indices posting solid gains as positive global cues and improving domestic earnings boosted investor sentiment. The Nifty 50 index rose 0.32% to close at 25,574 points, while the S&P BSE Sensex gained 0.38% to settle at 83,535 points.
The broader markets demonstrated strong resilience, with the Nifty Midcap 100 index rallying 0.47% and the Nifty Smallcap 100 advancing 0.35%. This recovery allowed bulls to regain control of Dalal Street following last week's correction, marking a significant turnaround in market dynamics.
Tech Stocks Lead Charge Amid Global Optimism
Technology stocks emerged as the primary drivers of Monday's market rebound. The Nifty IT index surged nearly 2% amid growing optimism that the longest U.S. government shutdown would soon conclude after the U.S. Senate passed the first stage of a new deal.
Expectations for another rate cut from the U.S. Federal Reserve strengthened following recent data showing that U.S. consumer sentiment fell sharply in November to its second-lowest reading on record. This development provided additional momentum to technology stocks, which are particularly sensitive to U.S. economic conditions.
Other sectoral indices that supported the market rebound included:
- Nifty Pharma
- Nifty Metal
- Nifty Consumer Durables
- Nifty Auto
These sectors gained between 0.30% and 1%, contributing to the overall positive market performance. However, not all sectors participated in the rally, with Nifty Media emerging as the top laggard, falling 1%, followed by a 0.25% drop in Nifty Realty.
Goldman Sachs Upgrade and Earnings Momentum Boost Sentiment
In a significant development, global brokerage firm Goldman Sachs upgraded India to "overweight" from "neutral", reversing its October 2024 downgrade. The brokerage cited strengthening earnings momentum and policy tailwinds supporting growth as key reasons for this optimistic revision.
Goldman Sachs has set a year-end 2026 target of 29,000 for the Nifty 50 index, implying a 14% upside from Monday's closing levels. This endorsement from a major global financial institution provided substantial confidence to market participants.
The earnings season brought cheer to several stocks across sectors. HBL Engineering emerged as the top performer among Nifty 500 stocks, gaining 12% to ₹1,094.7 per share as investors cheered the company's September quarter results.
NALCO shares closed 10% higher at ₹257.4 apiece following a healthy set of Q2 numbers. The company posted a net profit of ₹1,430 crore, supported by a steady rise in aluminium prices, compared with ₹1,046 crore in the same period last year – representing impressive year-on-year growth of 37%.
FSN E-Commerce Ventures, the parent company of Nykaa, climbed 6% to ₹260 per share after the company's Q2 profit more than tripled year-on-year. This remarkable performance was driven by steady demand in makeup and skincare segments and new global brand tie-ups.
Defence stocks also attracted significant investor attention, with names such as Hindustan Aeronautics, Garden Reach Shipbuilders, and Bharat Dynamics rallying over 4%. The broader market rally lifted several other stocks including Reliance Power, which ended 5% higher at ₹41 apiece, and CCL Products India, which extended its post-earnings rally with shares gaining another 5% to ₹1,071.90 per share.
Other notable gainers included UNO Minda, which gained 8% to ₹1,318.70 per share following better-than-expected September quarter performance and target price upgrades from brokerages. Zensar Technologies, Jindal Saw, Hindustan Zinc, and IIFL Finance also saw gains between 2% and 4%, completing a broadly positive trading session for Indian equities.
