Closing Bell: Market Snaps 3-Day Losing Streak To End Higher; Sensex & Nifty Rise, Banks & FMCG Lead

The Indian stock market closed Monday, September 9, on a positive note, as benchmark indices Sensex and Nifty posted strong gains, supported by a rally in banking and FMCG heavyweights. The Sensex surged by 376 points to settle at 81,560, while the Nifty 50 gained 84 points, closing at 24,936. This marked a strong recovery for the broader market despite underperformance in the midcap and smallcap segments.

While the major indices witnessed a bullish trend, midcap and small-cap stocks took a hit. The BSE Midcap Index dropped by 155 points, or 0.28%, closing at 58,347. Similarly, the Smallcap Index shed 0.65%, reflecting a broader weakness outside the larger blue-chip stocks. Market breadth also tilted in favour of declines, indicating that investors were cautious about taking positions in midcap and smallcap stocks despite the uptrend in largecap counters.

Banking and FMCG stocks were the primary drivers behind the market's rally. Select heavyweights, including ICICI Bank, HDFC Bank, Hindustan Unilever (HUL), and ITC, powered the gains. The Nifty Bank index jumped 1.07% to 51,118 points, while the Nifty FMCG index outperformed, rising by 2.04%.

ICICI Bank was among the standout performers, rising 2.09%, while HUL surged 2.85%, hitting a lifetime high. Investors were particularly bullish on HUL as the company announced a review of its ice cream business, fueling optimism about future growth prospects. ITC and Britannia also saw significant buying interest, with gains of 1.95% and 1.74%, respectively.

While the FMCG and banking sectors thrived, the metals sector struggled, pulling down the broader market's momentum. Shares of Hindalco and Tata Steel were among the worst performers on the Nifty 50, declining by 1.06% and 1.14%, respectively. The drag on metal stocks can be attributed to concerns over global demand and fluctuating commodity prices.

In contrast, the Nifty Private Bank index rose by 1.12%, reflecting investor confidence in the resilience of private banks. However, the Nifty PSU Bank index dropped by 0.20%, underlining continued pressure on state-owned banks, which have faced challenges such as asset quality issues and tepid loan growth.

Among the top gainers in the Nifty 50 were HUL, Shriram Finance, ICICI Bank, ITC, and Britannia. HUL led the charge with a 2.85% rise, followed by Shriram Finance, which gained 2.30% after UBS raised its price target for the company to Rs 3,850 per share. ICICI Bank's 2.09% gain further boosted market sentiment.

On the flip side, oil and gas giant ONGC was the top loser, shedding 2.91%. Tech Mahindra also saw a sharp decline, falling by 2.48%, while other notable laggards included BPCL (down 1.19%), Tata Steel (down 1.14%), and Hindalco (down 1.06%).

Several individual stocks outside the Nifty 50 also witnessed significant movement. Shares of SpiceJet surged by 3% after the airline announced a restructuring deal with Carlyle Aviation, aimed at reducing dues worth $40 million. On the downside, Godfrey Phillips fell more than 4% after shareholders reappointed Bina Modi as the company's Managing Director, triggering some negative sentiment.

JSW Energy enjoyed a 3% boost, driven by a positive note from Jefferies on the JSW Group. In contrast, Wockhardt shares fell by 2% following allegations made by Congress against the company, although Wockhardt denied any connection with the SEBI Chief.

On the currency front, the Indian Rupee ended the day almost flat, closing at 83.96 per US Dollar, marginally down from Friday's close of 83.95. The currency market remained stable amid a backdrop of mixed global cues and steady foreign inflows into domestic equities.