Sensex surges 567 points, Nifty up 131 points as large-cap stocks lead market recovery

The frontline equity indices Sensex and Nifty bounced back on Monday, led by gains in heavyweight sectors such as Information Technology (IT) and banking. Despite a weaker performance from midcap stocks, which ended in the red, the broader market managed to find support from large-cap stocks.

The BSE Sensex surged 567 points, closing at 76,405, while the NSE Nifty rose by 131 points, ending the session at 23,155. Meanwhile, the midcap index saw a sharp decline, falling 721 points to close at 53,114, although it recovered considerably from the session's lows. The broader market remained under pressure as the NSE Advance-Decline ratio stood at 1:3, reflecting more declines than advances across the market.

The rally in the benchmarks was primarily fuelled by strong performance in the IT sector, which tracked positive global cues. The Nifty IT index rose nearly 2%, buoyed by buying in major stocks such as Infosys, Tata Consultancy Services (TCS), and Wipro. IT stocks have recently gained momentum, aided by favourable global market trends and solid earnings growth expectations for the sector.

The banking sector, too, made a notable recovery with the Nifty Bank index advancing 154 points to 48,724. HDFC Bank played a significant role in the rebound, recovering more than 2% from its lows after posting in-line third-quarter (Q3) results.

On the other hand, the midcap segment remained under pressure, reflecting weakness in several sectors. Real estate stocks continued to struggle, with Puravankara, Oberoi Realty, and Godrej Properties each falling 5% amid ongoing sectoral challenges.

Macrotech Developers saw a sharp 6% drop after its CEO filed a trademark suit against his brother, further intensifying concerns about internal issues within the company.

Other midcap stocks also faced challenges. Polycab India saw a nearly 7% slip despite reporting better-than-expected Q3 earnings.

Tata Communications posted a mixed set of earnings, and the stock ended the day 5% off its lows.

On a positive note, several stocks delivered impressive earnings, boosting investor sentiment. Jana Small Finance Bank (SFB) surged 20% on strong quarterly results, outperforming many of its peers in the banking sector. Cyient DLM and IndiaMART also posted positive earnings reactions, though Cyient DLM and India Cement were among those stocks that reacted negatively to their respective quarterly results. ICICI Prudential Life Insurance also faced downward pressure, contributing to the broader midcap weakness.