Nifty, Sensex Close With Significant Gains; Bank, Metal and IT stocks in Fray

Indian benchmark indices closed with strong gains today as Nifty and Sensex rose sharply as banking, IT, and metal stocks rallied.

Sensex closed at 81,721.08, up 769.09 points or 0.95% respectively, while Nifty soared 243.45 points or 0.99% at 24,853.15. Close to 2222 shares advanced, while1571 shares fell. The value of 154 shares remained unchanged.

“The recovery, especially in IT stocks, indicates that fears related to rising yields may be easing,” said Aishvarya Dadheech, Founder and CIO of Fident Asset Management. According to him, India’s strong macroeconomic fundamentals and robust growth trajectory are sufficient to sustain consistent momentum in the market.

Sectoral indices traded in green, led by FMCG stocks, which rallied by 1.58% on the the Nifty FMCG index. IT stocks surged by 1.48%. Strong buying in private banks pushed the Nifty Private Bank index up by 1.01%. Nifty Bank went up by 0.81%, while Nifty Energy, Infra, Media, and Metal indices gained between 0.85–0.97%.

On the broader markets front, Nifty Midcap 100 and Smallcap 100 index rose by 0.63% and 0.88%. On a YTD basis midcap index is down less than 1%

BSE shares fell by 65% today as the stock traded ex-bonus.

On the technical aspects, Shrikant Chouhan of Kotak Securities said that Nifty and Sensex have formed bearish candles on the daily charts and continue to exhibit a lower top formation on intraday charts. He said a deeper correction may only materialise if the indices fall below 24,450 (Nifty) or 80,450 (Sensex), or breach their 20-day simple moving averages. Key resistance levels are seen at 24,650–24,750 for the Nifty and 81,100–81,300 for the Sensex.