Markets rally! Nifty ends near 24,550, Sensex gains 1300; IT stocks shine

The benchmark equity indices ended Friday’s trading session in the positive territory. The NSE Nifty 50 jumped 397.40 points or 1.65% to settle at 25,541.15, while the BSE Sensex gained 1330.96 points or 1.68% to 80,436.85.

The broader indices ended in positive territory, with gain led by Mid-cap and Small-cap stocks. IT and Realty stocks outperformed among the other sectoral indices while PSU Banks and Pharma stocks gained.

Sectoral Index

Bank Nifty index ended higher by 789.60 points or 1.59% to settle at 50,516.90. The Nifty Midcap 100 zooms 1,108.95 points, or 1.96%, ending the day’s trading at 57,656. In the broader markets, small-cap and mid-cap stocks finished in the green.

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Top Movers for the day

Wipro, Tech Mahindra, Grasim, Tata Motors, and Mahindra & Mahindra are the top gainers on NSE Nifty 50 whereas the top laggards include Divis Lab,SBI Life Insurance, and Dr Reddy’s Lab.

The Indian Volatility Index (India VIX) closed down by 6.68 % at 14.40.

Experts on Today’s Market Performance

“The stability of the JPY has been instrumental in driving a global market recovery. Besides that, the strong U.S. retail sales and a decline in weekly jobless claims have helped alleviate fears of a U.S. recession. Further, the market sentiment has improved due to a decrease in U.S. CPI inflation. On the backdrop of these, the Indian IT firms exhibited strong buying interest,” said Vinod Nair, Head of Research at Geojit Financial Services

Nair also said that the Indian CPI inflation rate has fallen below the estimate, signalling optimism. However, challenges such as a drop in WPI inflation, weak IIP, and lukewarm Q1 corporate earnings suggest that market gains may be limited, which is reflected by FIIs maintaining a net seller position.

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Commenting on the same Ajit Mishra – SVP, Research, Religare Broking said that Markets staged a robust recovery on Friday, gaining nearly 1.5%, driven by positive global cues. After opening with a gap-up, the Nifty initially lost all its gains in the early hours but rebounded due to strong buying interest in select heavyweight stocks. As a result, the Nifty decisively crossed the resistance at 24,400, closing near the day’s high at 24,541.15. The rally was broad-based across sectors, with IT, realty, and auto stocks leading the gains. The broader indices also showed a solid recovery, each advancing nearly 2%.

Mishra also added that With the Nifty breaking out of its consolidation phase, it appears poised to close the gap around the 24,700 level. If there is any dip, the 24,300-24,400 zone should provide support. We recommend aligning trades with a focus on stock picking. In the absence of any major domestic triggers, attention will remain on global market performance for further cues.

Bank Nifty

Commenting on the Bank Nifty today Riyank Arora Technical Analyst at Mehta equities said that The benchmark index, Bank Nifty, has touched its resistance at the 50,600 mark and witnessed some profit booking. A slight cooldown toward the 50,400 level is expected before a fresh rally towards the 51,000 zone. The current market scenario favors a ‘buy on dips’ strategy, with a recommended stop loss at 50,100. We anticipate a renewed uptrend targeting 51,000 as banking stocks stabilize at support levels.

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