Sensex Surges Over 500 Points as Global Sentiment Improves and US Shutdown Nears Resolution

The Indian stock market started the week on a strong note as positive global cues and easing concerns over the US government shutdown boosted investor sentiment.

The Sensex surged over 500 points, while the Nifty held firm above the 25,500 mark, supported by robust buying in banking, metal, and energy sectors. At 12:51 pm, the Sensex was up 508.20 points (0.61%) at 83,724.48, while the Nifty gained 153.10 points (0.6%) to 25,645.40. Broader indices also showed strength, with mid-cap and small-cap stocks advancing nearly 1%.

Global Optimism Lifts Market Mood

Investor confidence across global markets improved following reports that the US Congress is close to ending the government shutdown, the longest in American history. The shutdown had previously stalled key economic functions and created uncertainty in global financial markets.

“Reports that the US Congress is close to a deal have improved sentiment worldwide,” said Ponmudi R, CEO of Enrich Money. “Early trade is supported by buying in oil & gas, realty, metals, and pharma stocks—reflecting renewed risk appetite.”

He added that the Nifty 50 is showing solid support above 25,500, with potential upside resistance near 25,700–25,800. “A breakout beyond this zone could fuel a rally toward 26,000–26,200, while support remains firm near 25,300–25,350,” Ponmudi noted.

Domestic Strength Adds to Gains

Back home, steady foreign investor inflows, healthy Q2 corporate earnings, and strong macroeconomic indicators continue to underpin market resilience.

“India remains a structural outperformer among emerging markets,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “Domestic growth indicators are robust, credit expansion is healthy, and inflation appears contained.”

Key sectors leading Monday’s rally included banks, infrastructure, and automobiles, while FMCG stocks traded mixed.

Outlook: Positive But Cautious

Market analysts are now closely monitoring developments in the US shutdown deal and upcoming data releases on inflation and industrial production (IIP), which could influence near-term sentiment.

Experts suggest that a decisive move above 25,800 on the Nifty could open the door to 26,000–26,200, while a drop below 25,300 may trigger short-term profit booking.

For now, optimism is prevailing, with a blend of global relief and domestic confidence driving momentum. However, analysts advise investors to stay selective and focus on quality stocks amid lingering global uncertainties.