Key gauges reverse losses to end with decent gains

Indian equity benchmarks staged a strong comeback, recovering sharply from initial losses to close Monday’s session with decent gains, propelled by bargain hunting in Metal, Basic Materials and PSU stocks. However, escalating geopolitical tensions and unrelenting foreign fund outflows restricted the further gains.

Some of the important factors in trade: 

India’s exports to China register 33% growth in April-November of FY26: Signalling a structural shift in India-China bilateral trade relationship, the commerce ministry’s data has showed that China is gradually emerging as preferred export partner for India, with merchandise exports surging by 32.83 per cent to $12.22 billion during April-November of FY26.

Number of FTAs to provide better market access for India’s agri food processing sectors: Minister of State for Commerce and Industry Jitin Prasada has said that the number of free trade agreements (FTAs) signed and implemented by India will provide better market access to the domestic agri and food processing sectors. 

India needs to focus on generating skilled jobs, improving employment quality in short-term: Charting India’s path to inclusive growth, S Mahendra Dev, chairman of Economic Advisory Council to the Prime Minister (EAC-PM), has said that the country’s short-term goals include generating skilled jobs and improving employment quality. 

Fertilizer stocks in watch: India’s push towards Atmanirbhar Bharat is yielding tangible results in the fertilizer sector, with domestic production meeting nearly 73 percent of the country’s total fertilizer requirement in 2025, driven by measures like the establishment of new fertilizer plants, revival of previously closed units, promotion of indigenous manufacturing, and assured availability of raw materials. 

Global front: European markets were trading mostly in red amidst renewed geopolitical tensions in the Middle East as well as concerns about the Federal Reserve's independence. Asian equity markets ended mostly in green amid optimism about the outlook for interest rates after a report showed employment in the U.S. increased less than expected in December. 

Finally, the BSE Sensex rose 301.93 points or 0.36% to 83,878.17 and the CNX Nifty was up by 106.95 points or 0.42% to 25,790.25.        

The BSE Sensex touched high and low of 83,962.33 and 82,861.07 respectively. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.41%, while Small cap index was down by 0.68%.

The top gaining sectoral indices on the BSE were Metal up by 1.92%, Basic Materials up by 1.06%, PSU up by 0.93%, Energy up by 0.85% and Oil & Gas up by 0.63%, while Realty down by 1.13%, Capital Goods down by 0.82%, Industrials down by 0.67%, Healthcare down by 0.51% and Telecom down by 0.46% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.75%, Asian Paints up by 2.54%, Trent up by 2.05%, SBI up by 1.50% and Hindustan Unilever up by 1.36%. On the flip side, Infosys down by 1.16%, Bajaj Finance down by 0.93%, Bharat Electronics down by 0.29%, HDFC Bank down by 0.22% and Larsen & Toubro down by 0.20% were the top losers.

Meanwhile, the commerce ministry in its latest data has showed that Spain, Germany, Belgium, and Poland are emerging as India’s key export destinations within the 27-nation European Union (EU) bloc. Among these, Spain has emerged as a high-growth European market for Indian exports, with exports surging by over 56% to $4.7 billion during April-November of FY26 from $3 billion in the corresponding period of the previous fiscal. This sharp surge has resulted in Spain’s share in India’s total exports rising to 2.4 percent, a gain of 0.5 percentage points, the highest share increase recorded among European partners during the period.  

Similarly, the data showed India's exports to Germany rose to $7.5 billion during the eight months of FY26 from $6.8 billion in the same period last year, reflecting a growth of 9.3 per cent. The country's shipments to Belgium rose slightly from $4.2 billion to $4.4 billion during April-November this fiscal. Also, India's exports to Poland grew 7.6 per cent to $1.82 billion during April-November 2025-26 from $1.69 billion in the same period of the previous financial year. 

As India and the EU are moving closer to a proposed free trade agreement (FTA), the bilateral trade between the two is expected to register healthy growth despite the global economic uncertainties. India bilateral merchandise trade with the EU stood at $136.53 billion in 2024-25, with exports worth $75.85 billion and imports of $60.68 billion, making it the largest trading partner for goods. The EU market accounts for about 17 per cent of India's total exports, and the bloc's exports to India constitute 9 per cent of its total overseas shipments.

CNX Nifty touched high and low of 25,813.15 and 25,473.40 respectively. There were 39 stocks advancing against 11 stocks declining on the index.      

The top gainers on Nifty were Coal India up by 3.39%, Tata Steel up by 2.75%, Asian Paints up by 2.50%, JSW Steel up by 2.26% and Hindalco up by 2.21%. On the flip side, Infosys down by 1.02%, Tata Motors Passenger down by 1.00%, Bajaj Finance down by 1.00%, Bajaj Auto down by 0.88% and Eicher Motors down by 0.85% were the top losers. 

European markets were trading mostly in red; UK’s FTSE 100 decreased 9.1 points or 0.09% to 10,115.50 and France’s CAC fell 22.29 points or 0.27% to 8,339.80, while Germany’s DAX gained 124.16 points or 0.49% to 25,385.80.

Asian markets settled mostly higher on Monday buoyed by continued optimism and strong performance of AI and chipmaking stocks across the region. Stock market of Japan was closed for a holiday. South Korea’s Kospi closed at an all-time high. Hang Seng soared the most among Asian indices as China advances in key technologies and expectations of further policy support reinforced bullish sentiment.