Sensex, Nifty rise for second straight session as banking shares drive gains

Dalal Street started the week on a strong footing Monday, with benchmark indices surging on the back of gains in banking, IT, and healthcare stocks.

The S&P BSE Sensex jumped 582.95 points to close at 81,790.12, while the NSE Nifty50 rose 183.40 points to reclaim the 25,000 mark, extending the market’s winning streak.

Buying momentum was broad-based, with volatility easing and sentiment improving ahead of the upcoming earnings season. Banking shares led the rally, supported by robust quarterly business updates and attractive valuations. IT majors also gained, aided by optimism around stable demand and a weaker rupee, while hospital stocks rallied sharply following the government’s revision of CGHS rates, which is expected to boost margins for healthcare providers.

Analysts said the upbeat tone in domestic equities was fuelled by expectations of steady Q2FY26 earnings and optimism about a stronger second half of the fiscal year.

“Financials and IT were the key drivers today, reflecting confidence in India’s growth outlook ahead of the results season,” said Vinod Nair, Head of Research at Geojit Financial Services. “Hospital stocks too saw strong traction after the revision of CGHS rates. While Q2 earnings expectations are moderate, sentiment is improving as investors anticipate stronger Q3 numbers driven by festive demand.”

Market experts, however, flagged global trade tensions and tariff concerns as potential headwinds, even as progress in India-US trade talks could trigger the next leg of the rally.

With the festive season around the corner, traders expect renewed interest in consumer-oriented sectors, further supporting market momentum.

Overall, Monday’s performance underscored broad-based strength and resilient investor sentiment, suggesting that despite global uncertainties, domestic fundamentals continue to anchor Dalal Street’s upward trajectory.