Vaibhav Vidwani, Research Analyst at Bonanza
Yesterday, the Indian stock market closed on a positive note, with both the Nifty 50 and Sensex ending higher buoyed mainly by robust gains in the IT sector, alongside favourable global cues and renewed investor confidence in large cap names. The Nifty 50 settled at 24,868.6, rising 95 points (+0.39%), while the Sensex closed at 81,101.32, up 314 points (+0.39%).
The positive close was propelled by strong buying in IT stocks, with the Nifty IT index rallying 2.8%. The rally gained traction after Infosys announced a proposed share buyback, which improved sentiment across the sector.
Global equity optimism, on account of expectations for US Federal Reserve interest rate cuts and strong recent performances of US tech indices like Nasdaq, created a tailwind for domestic technology stocks. Additionally, a steady rupee and stable oil prices added to the upbeat market mood. Sectoral rotation saw midcaps remain subdued and profit-booking in autos after Monday’s sharp rally.
Broad-based gains in IT, pharma, and FMCG stocks lifted the benchmarks, while realty, auto, and oil & gas sectors saw some selling. Market breadth was mixed, while large caps shone, midcap and smallcap participation was muted. Investors are closely watching upcoming inflation data from India and the US for clues on the Federal Reserve’s rate outlook, which will remain key for short term direction.
The proposed second weekly derivatives expiry on Nifty supports current volumes and volatility. With a positive undertone and sectoral rotation fueling resilience in large caps, near term market trajectory is likely to hinge on global monetary signals and domestic macro numbers.
