Big gains were seen in broader markets with the mid and small-cap segments displaying notable outperformance compared to the benchmark indices. The Nifty Midcap 100 Index soared by 1.81%, while the Nifty Smallcap 100 Index ended with gains of 1.02%.
The Nifty Bank index underperformed as SBI and Kotak Mahindra Bank slipped on mixed Q4 results. Multiple analysts tracking Kotak have downgraded the stock. The lender had reported results on Saturday.
Sectorally, Auto, Oil & Gas, and FMCG stocks were the primary drivers of gains, while banking was the only sector to close in the red.
Mahindra & Mahindra Ltd. (M&M) shares rose more than 3% on strong Q4 results led by their tractor segment. Consolidated revenue rose 24.5% from last year to ₹31,353 crore, while net profit went up by 19.6% to ₹2,437 crore. EBITDA rose 39% from last year to ₹4,683 crore. EBITDA margin for the quarter stood at 14.9% from 13.4% last year.
Going ahead, market attention will shift to earnings reports from Bank of Baroda, Paytm, Aadhar Housing Finance, Godrej Consumer Products, Polycab India, Mahanagar Gas, Hindustan Petroleum Corp, and CG Power and Industrial Solutions.
Continued buying by both FIIs and DIIs over the last five trading sessions has been further supporting the market sentiments, said Siddhartha Khemka of Motilal Oswal.
“We expect the market to continue its consolidation with a positive bias, while tracking global cues and developments on the geopolitical front,” Khemka added.
It will be a big week for Wall Street as the US Federal Reserve kicks off a two-day policy meeting on Tuesday, with a decision expected on Wednesday. Investors will be tracking the US Fed’s interest rate decision and the following commentary for insights into the US economy post contraction in the Q1 GDP.
Nagaraj Shetti of HDFC Securities said that a sustainable move above the hurdle of 24,500-24,600 levels, the Nifty could move towards the next upside of 24,800-25,000 in the near term. Immediate support is placed at 24,250.
According to LKP Securities’ Vatsal Bhuva, the Nifty continues to trade within a narrow range of 24,200 to 25,500, with firm support at the 24,200–24,250 zone and resistance around 24,500–24,550.
“While a decisive breakout above 24,550 could spark bullish momentum towards 25,000, Monday’s small-bodied candlestick suggests that short-term consolidation may persist. The index is holding above its rising 10-day EMA, reflecting a positive near-term trend. With the RSI in a bullish crossover, underlying strength remains intact. The outlook stays bullish as long as Nifty sustains above 24,200, though a strong close above 24,550 is essential for confirmation,” Bhuva added.
