This surge contradicted the conventional belief that rising bond yields lead to a decline in stock prices, stated an ET report.The 10-year Indian government bond yields rose to 7.1438%, following a trend in US Treasury yields which surged due to robust economic data delaying expectations of the Federal Reserve’s rate cut.
Stocks in Focus: Gainers & Losers
Mid and smallcap indices lagged behind as auto, metal, and realty stocks led the upward movement. Notable gains were observed in Eicher Motors, Maruti Suzuki, and M&M, each rallying between 3-5%, with heavyweight Reliance also trading around 2% higher.
In terms of market breadth, the Nifty favored bulls, with 37 stocks closing in the green while 13 ended in the red. Eicher Motors, Mahindra & Mahindra (M&M), Maruti Suzuki, NTPC, and SBI Life Insurance Corporation emerged as top gainers, whereas Adani Ports & Special Economic Zone, Nestle India, Apollo Hospitals, Wipro, and Sun Pharmaceuticals were among the top losers.
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Auto stocks took the spotlight, followed by the energy and metals sectors. Nifty Auto rose by 2.16%, Nifty Oil & Gas by 1.45%, and Nifty Metal settled with a gain of 1.10%. Out of the 15 sectoral indices on the NSE, 12 ended in positive territory, while Nifty IT, Nifty Media, and Nifty PSU Bank experienced declines of up to 0.89%.
Why Sensex & Nifty rallied today: Top Reasons
Global markets : On the global front, the Nasdaq and S&P500 closed more than 1% higher on Friday, with positive job creation data in the US boosting market sentiment. This positivity extended to Asian markets like Hong Kong, Tokyo, Sydney, Seoul, Singapore, and Taipei.- Crude oil prices also dropped over $1 a barrel on Monday, influenced by easing tensions in the Middle East.
- Foreign Institutional Investors (FIIs), played a significant role in the market’s upswing. Foreign investors, who were net buyers of Indian stocks worth about Rs 35,000 crore last month, continued to invest Rs 1,700 crore on Friday. Retail investors also supported the market during this bullish phase.
- Companies releasing Q4 business updates and earnings expectations for the quarter further impacted stock movements. Info Edge shares rose by nearly 10% post a strong Q4 performance, while Voltas saw a 7% increase after reporting sales of 20 lakh air conditioners in FY 2023-24. Nykaa’s stock rose over 6% following positive revenue growth expectations.
- As the earnings season kicks off, investors adjusted their portfolios in anticipation of results. Analysts predict Nifty earnings to grow by 6% YoY, with domestic cyclicals like Auto and BFSI expected to show strong growth. Conversely, global cyclicals like Oil & Gas and Metals are projected to decline YoY.