Sensex gains over 500 points: What's behind today's rally?

Sensex gains over 500 points: What's behind today's rally?

India's equity benchmarks, the Sensex and Nifty, are witnessing a strong rally today. The Sensex has gained over 500 points while the Nifty is trading above the 24,000 mark.

The surge is largely driven by a rise in auto stocks after their June sales data was released.

At around 1:40pm, the Sensex was up by 536 points at 77,015. The Nifty also gained momentum with an increase of about 166 points to trade at around 24,031 levels.

Auto stocks drive market surge

Mahindra & Mahindra emerged as the top gainer on the Nifty index after reporting a 37% growth in overall sales for June. The company's shares surged by 3% today.

Other automobile companies also witnessed gains, with Bajaj Auto's shares rising between 1.3-3%.

In the broader market, most indices outperformed their benchmark peers slightly, with all small-cap indices up by 0.4-0.6% and mid-cap indices gaining around 0.3% each.