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The Nifty extended its winning streak to the fourth consecutive day, closing at an 8-month high. The index opened with an upside gap of 157 points and later shifted into a range-bound phase that continued till the end of the session.
On the first trading session of the week, the Nifty held on to levels above 25,100, recording its highest closing level of 2025. Finally, the index ended with gains of 100 points at 25,103.
As many as 40 Nifty stocks closed in the green, with Jio Financial, Kotak Bank, and Bajaj Finance among the top gainers.
Meanwhile, the Nifty Bank index hit a record high for the second straight day, crossing the 57,000 mark for the first time.
The Nifty Midcap and Smallcap indices once again stole the spotlight, extending their outperformance relative to the benchmark.
The Nifty Smallcap index continued its remarkable upward journey for the sixth day in a row, reaching a new five-month high. The Nifty Midcap 100 Index advanced by a robust 1.13%, while the Nifty Smallcap 100 Index surged by an even stronger 1.57%.
Except Nifty realty, all the sectors ended in the green. Among them, Nifty PSU Banks, IT, and Oil & Gas were the standout performers, showcasing strong buying interest.
The Reserve Bank of India's (RBI) move to cut the repo rate by 50 basis points and the CRR by 100 basis points led to continued gains for banks and NBFCs. Gold financiers also saw sustained buying interest as the RBI eased gold loan norms, with stocks rising 4-8%.
In the auto space, Hero MotoCorp and Maruti were among the top gainers, benefiting from the RBI's rate cut announcement.
Tata Motors ended the session 1% higher on the back of a positive mid-term outlook. The company expects its commercial vehicle (CV) business to capture a 40% market share and deliver EBITDA margins in the teens. It also aims to generate free cash flow worth 7–9% of revenue, maintain high return on capital employed (RoCE), and reduce business volatility.
Shares of food delivery aggregator Swiggy Ltd. and Zomato's parent Eternal Ltd. closed 2–3% lower after sources told CNBC-TV18 that Rapido is set to launch a food delivery pilot in Bengaluru by the end of the month.
Meanwhile, both domestic and foreign investors were net buyers in the cash market on Monday.
Going ahead, market participants would be tracking the upcoming US May Retail Inflation data (CPI) to be released on Wednesday, followed by India’s CPI on Thursday.
Siddhartha Khemka of Motilal Oswal expects the market to continue its gradual up-move, on the back of strong domestic cues - better than expected Q4 corporate earnings, RBI's liquidity-boosting measures, above average monsoon forecast and the likely US-India trade deal.
The underlying trend of the Nifty remains positive, said Nagaraj Shetti of HDFC Securities. "A sustainable move above 25,200 could open the next upside towards 25,600 levels in the near term. Immediate support is placed at 24,900 levels."
According to Rupak De of LKP Securities, the Nifty has finally broken out of its prolonged consolidation on the daily timeframe. Market sentiment appears positive, with the index sustaining well above the crucial 50-day moving average (50DMA).
"Following the breakout, a rise towards 25,350 looks likely. A decisive move above this level could trigger a rally towards 25,700. On the downside, support is placed at 24,850; a breach below this level may lead to a shift in sentiment," he added.
"Technically, by decisively breaking out from its consolidation range of 24,500-25,100, the Nifty has clearly re-entered a bullish momentum phase. The index now likely to extend this rise towards 25,307," said Nandish Shah of HDFC Securities.
