Sensex Surges Over 500 Points from Day’s Low: Auto and Metal Stocks Shine

Indian benchmark indices staged a strong recovery on Monday, buoyed by robust gains in metal and auto stocks, along with supportive cues from Asian markets. The Sensex rebounded more than 500 points from its intraday low, while the Nifty inched close to the 24,700 mark.

As of 1:15 PM on August 4, the Sensex had climbed 403.77 points or 0.50% to reach 81,003.68, and the Nifty rose by 132.70 points or 0.54%, standing at 24,698.05. Market breadth was positive, with 1,929 stocks advancing, 1,620 declining, and 150 remaining unchanged.

Among the top performers were Hero MotoCorp, Bharat Electronics, Tata Steel, Eicher Motors, and Hindalco Industries, each gaining up to 4%.

Key Drivers of Today’s Market Rally

Auto Sector Gain

The Nifty Auto index advanced 1.1%, led by a 2.4% surge in TVS Motor Company following strong quarterly earnings. Hero MotoCorp also rose 2.3% after reporting a 21% increase in July dispatches, which lifted investor sentiment across the sector.

Rally in Metal Stocks

The Nifty Metal index jumped 1.6%, with 14 of its 15 constituents trading in the green. A weakening US dollar boosted demand for commodities, helping metal prices firm up and pushing stocks in the sector higher.

Positive Global Sentiment

Asian markets provided an encouraging backdrop, with South Korea’s Kospi, Hong Kong’s Hang Seng, and Shanghai’s SSE Composite all trading higher. Additionally, US stock futures remained in positive territory during Asian trading hours, signaling a likely strong start for Wall Street.

Decline in Crude Oil Prices

Brent crude eased by 0.23% to $69.51 a barrel, offering some relief on the inflation front. Falling oil prices are generally beneficial for oil-importing countries like India, improving the broader economic outlook.

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