Sensex settles 300 pts higher, Nifty above 25,550: Hopes of end to US shutdown among key factors behind market rise

Stock market today rose amid buying by FIIs. 

The benchmark equity indices rebounded on Monday after three straight sessions of losses, tracking firm global cues and renewed optimism over a possible end to the US government shutdown.

The Sensex climbed 319.07 points or 0.38 percent to 83,535.35, while the broader Nifty advanced to 25,574.35, up 82.05 points or 0.32 percent.

Asian Paints, Tata Consultancy Services, Wipro, Grasim Industries and Coal India were among the major gainers, rising up to 2 percent. Market breadth was also positive as about 1841 shares advanced, 1815 shares declined, and 183 shares unchanged.

Key factors behind market rise today

1) Global Cues Lift Sentiment: Investor sentiment improved following gains in Asian markets and optimism in global equities. Wall Street futures rose up to 1.2 percent, reflecting hopes that a resolution to the 40-day US government shutdown may be near. IT shares led the rally in domestic markets, with the Nifty IT index gaining nearly 2 percent.

"Optimism surrounding a potential resolution of the prolonged U.S. government shutdown has aided market sentiment," Abhishek Goenka, founder and chief investment officer, Billionz told Reuters.

In Asian markets, South Korea’s Kospi jumped 3 percent, Japan’s Nikkei 225 gained nearly 1 percent, and Hong Kong’s Hang Seng rose 0.47 percent. US markets had ended largely higher on Friday.

2) FII Buying Supports Markets: Foreign Institutional Investors (FIIs) turned net buyers after six sessions of selling, purchasing equities worth Rs 4,581.34 crore on Friday. The return of FII inflows provided further support to market sentiment.

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3) Goldman Sachs Upgrade Boosts Confidence: Adding to the positive mood, global brokerage Goldman Sachs upgraded India to "overweight" from "neutral" after 13 months, citing improved macroeconomic stability and growth outlook. The firm set a Nifty 50 target of 29,000 by December 2026, implying a potential upside of about 14 percent from Friday’s close. The upgrade reinforced investor confidence in domestic equities, particularly in large-cap and growth-oriented sectors.

Nifty Outlook

"Despite a few uncertain moments early in the day, the 25,400 region invited bulls to regroup on anticipated lines. We will, however, wait for a push beyond the 25,630–25,650 region to play upsides with confidence. Deeper supports are at 25,200 and 25,088 respectively," said Anand James, Chief Market Strategist, Geojit Financial Services.

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