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The Indian stock market stayed higher for the second session on Monday, December 22, as overseas investors turned net buyers in recent sessions, boosting market sentiment, while a strong rally in tech and metal stocks also supported the frontline indices in starting the week on a positive note.

After surging 0.56%, the Nifty 50 advanced another 0.79% to reclaim the 26,000 mark, settling at 26,172, while the S&P BSE Sensex jumped 0.75% to 85,567. The broader market closed with even higher gains, with the Nifty Midcap 100 and Nifty Smallcap 100 indexes surging 0.76% and 1.07%, respectively.

All major sectors advanced, led by Nifty IT, which surged 2%, followed by Nifty Chemicals, Nifty Metal, Nifty Auto, and Nifty Pharma, all rising between 0.7% and 1.4%.

After remaining net sellers for the first half of December, foreign portfolio investors turned net buyers in the last three trading sessions, pouring in a cumulative ₹3,596 crore, as per the exchange data, amid a sharp recovery in the Indian rupee.

In addition, global risk appetite improved after the latest US economic data reinforced expectations of further interest rate cuts by the US Federal Reserve.

Jupiter Wagons led Monday’s gainers, with the stock rallying 19.3% to ₹312.30 apiece after the company’s promoter group increased its stake in the firm to 19.24% from 18.69% on Friday.

Other railway-focused stocks also closed with sharp gains, with Ramkrishna Forgings, Titagarh Rail Systems, RailTel Corporation of India, Rail Vikas Nigam, Ircon International, IRFC, and Indian Railway Catering & Tourism Corporation surging anywhere between 1% and 8%.

The rally followed the Indian Railways’ announcement of a rationalisation of passenger fares on Sunday, with a revised fare structure set to take effect from December 26. The move is aimed at balancing rising operational costs while minimising the impact on passengers.

In line with the railway pack, defence stocks also posted strong gains, with stocks such as Cochin Shipyard, Solar Industries India, Garden Reach Shipbuilders, Mazagon Dock Shipbuilders, and Bharat Dynamics rallying between 4% and 6%.

Metal stocks also attracted strong buying interest amid a continued rally in base metal prices and a falling US dollar index. National Aluminium Company, Hindustan Copper, Lloyds Metals & Energy, SAIL, Welspun Corp, and Hindustan Zinc surged in the range of 3% to 4%.

(more to come)

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