The S&P BSE Sensex added 76.54 points, or 0.09%, to finish at 80,787.30, while the NSE Nifty 50 rose 32.15 points, or 0.13%, to 24,773.15.
Top Movers
On the Sensex, Tata Motors, Mahindra & Mahindra, Maruti Suzuki, Adani Ports and Tata Steel led the advance, advacing between 0.7% and 4%.
The metals index rose 0.4% after Morgan Stanley struck a more positive view on Indian steelmakers, pointing to stronger demand, China’s supply reforms and a weaker U.S. dollar.
The brokerage raised its rating on JSW Steel and Tata Steel to “overweight” from “equal weight,” and lifted SAIL to “equal weight” from “underweight.” Shares of the three companies gained between 0.7% and 3%.
Auto stocks outperformed, with the sector index up 1.8%, powered by Tata Motors and Mahindra & Mahindra, which each jumped 4% after cutting prices across their lineups to pass along the full benefit of the GST reductions to buyers.In the broader market, the smallcaps and midcaps rose 0.2% and 0.5%, respectively.
Expert views
The domestic market failed to sustain its early gains as a late-session sell-off reflected the prevailing “buy-on-dips, sell-on-rallies” strategy, highlighting investor caution, said Vinod Nair, Head of Research at Geojit Investments, adding that auto and ancillary stocks continued to rally on expectations of demand recovery following GST rate cuts, while IT remained weak amid global uncertainties.
“Globally, sentiment improved after soft U.S. jobs data raised hopes of a Fed rate cut in September. However, renewed concerns over sanctions on Russian oil pushed crude prices higher, and gold extended gains as trade-related uncertainties sustained demand for safe-haven assets,” said Nair.
On the technical front, the prevailing tussle is expected to end only with a decisive breakout above the 25,000 mark on the Nifty, while the 24,400–24,600 zone should act as a cushion, said Ajit Mishra, SVP, Research at Religare Broking.
“We suggest closely tracking the performance of banking and IT majors for the next directional move in the index. Meanwhile, traders should continue to focus on other sectors that are holding firm and participating on a rotational basis,” said Mishra.
Global Markets
World stocks edged higher Monday and Treasury yields stayed subdued after last week’s weak U.S. jobs report cemented expectations for a Federal Reserve rate cut this month, as investors braced for a week dominated by politics, key data releases and central bank decisions.
Futures on the S&P 500 rose 0.2%, positioning the index to revisit the record intraday high set after the jobs data. European equities gained 0.2% and Asian markets advanced 0.7%.
Investors are now focused on Wednesday’s U.S. consumer-price index report, the final major release before the Fed’s policy meeting. A stronger-than-expected print could scale back bets on an outsized cut.
Gold extended its rally, touching another record at $3,616 an ounce. The metal has surged 37% so far this year, after a 27% climb in 2024.
Crude Impact
Oil prices rebounded Monday, recovering part of last week’s slide, as investors judged OPEC+’s output increase to be modest and weighed the risk of further sanctions on Russian crude.
Brent crude rose $1.16, or 1.8%, to $66.66 a barrel by 0858 GMT, while U.S. West Texas Intermediate advanced $1.09, or 1.8%, to $62.96.
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