Stock market rebounds as RIL, banks lead rally; Nifty reclaims 26,000

The stock market recouped losses from the previous session on Monday, with benchmark indexes rising up to 1%, as gains in Reliance Industries, Bharti Airtel, and banking stocks lifted sentiment, even as market breadth remained neutral.

The NSE Nifty 50 index rose 171 points, or 0.66%, to close at 25,966, while the S&P BSE Sensex gained 567 points, or 0.67%, to end at 84,779. The Nifty Bank index advanced 415 points to 58,114, while the Nifty Midcap 100 added 549 points to 59,780.

"The domestic market witnessed a broad-based recovery owing to progress in the US-China trade talks. Meanwhile, gold prices declined as demand for safe-haven assets waned. Softer-than-expected US CPI data renewed expectations of a FED rate cut this week, boosting investor confidence. Easing  global headwinds, coupled with strong domestic reforms, provided cues for domestic earnings growth and justified the current premium valuations," Vinod Nair, Head of Research, Geojit Investments Limited, said.


Public sector banks outperformed, with the Nifty PSU Bank index gaining nearly 3%, boosted by reports suggesting that the government may consider raising the foreign direct investment (FDI) limit in the sector.

Coforge Ltd surged more than 4% after posting better-than-expected quarterly earnings, while Federal Bank gained 3% as brokerages raised their target prices following its second-quarter results.

Vodafone Idea shares jumped up to 10% after the Supreme Court delivered a favourable verdict in the adjusted gross revenue (AGR) case. Indus Towers, which has exposure to Vodafone Idea, rose 3%.

On the downside, Kotak Mahindra Bank fell 2% after reporting in-line second-quarter earnings, while SBI Cards and SRF Ltd declined over 3% and 2%, respectively, following mixed results.Read about our editorial guidelines and ethics policy