India's stock market surged on Monday, with the Sensex climbing 1,200 points to close at 71,900. The Nifty also rose 400 points to close at 21,700. The gains pushed investor wealth up by ₹6 trillion on Monday. Of the 30 stocks in the Sensex, only five declined. ONGC shares jumped 8%, while Reliance Industries shares rose 7%. Adani Enterprises shares gained 6%. Tech Mahindra, Cipla, and Airtel shares fell. The market had fallen last week on January 25, with the Sensex losing 359 points to close at 70,700. The Nifty Bank also fell 101 points to close at 21,352. Investors had sold heavily to book profits.
The reasons for the market rally included:
- Gains in the shares of companies with a large market share, such as Reliance and HDFC Bank.
- Support from the global market rally.
- Excitement among foreign institutional investors for investing in the Indian market.
- Expectations from the government's last budget of the second term. As a result, investors were seen to be buying heavily.
- Reliance Industries' market capitalization crossed ₹19 trillion on Monday, making it the country's largest company.
The stock of Reliance Industries rose 4.19% to close at ₹2,824 on the BSE Sensex, while on the NSE, the company's shares rose 4.35% to close at ₹2,824. Reliance Industries, which is a leader in the oil and telecom sectors, reported a 9.3% increase in net profit for the third quarter of the current fiscal year. Reliance Industries' power business saw some weakness on Monday, but the company's retail and telecom businesses offset this weakness. The company's profit has increased due to the continued growth of its consumer business.