The benchmark equity indices ended Wednesday’s trading session in the positive territory. The NSE Nifty 50 gained 147.50 points or 0.62% to settle at 23,868.80, while the BSE Sensex jumped 620.72 points or 0.80% to 78,674.25. Bank Nifty index ended higher by 264.50 points or 0.50% to settle at 52,870.50.
The broader indices ended in mixed territory, with gain led by Large-cap and Mid-cap stocks. Media and Energy stocks outperformed among the other sectoral indices while Metal and Realty stocks shed.
Reliance Industries, Bharti Airtel, UltraTech Cement, Grasim and Britannia Industries are the top gainers on NSE Nifty 50 index whereas the top laggards include Apollo Hospitals, Mahindra & Mahindra, Bajaj Auto, Tata Steel, and Hindalco Industries.
The Indian Volatility Index (India VIX) closed down by 1.86 % at 14.05.
“The domestic market hit a new peak, bolstered by a rally in large-cap stocks, where the valuation is relatively fair. In contrast, mid- and small-cap stocks saw profit-taking due to valuation concerns,” said Vinod Nair, Head of Research, Geojit Financial Services.
Nair also said that, Currently, the financials & consumption stocks are catching-up driven by improved balance sheets, a strong GDP growth forecast, and softening inflation. Global market sentiments reflected similar trends, with a consensus on imminent rate cuts.
Commenting on the same Ajit Mishra – SVP, Research, Religare Broking said that markets edged higher as expected, gaining over half a percent. After a flat start, the Nifty gradually climbed throughout the session and closed near the day’s high at 23,868.80 level. Sectoral trends were mixed, with energy, FMCG, and banking contributing to gains, while metal, auto, and realty sectors faced pressure. The broader indices remained range-bound and closed nearly unchanged.
Mishra also added selective heavyweights have been driving the index gains, with Reliance making a significant impact today. We anticipate some volatility on Thursday due to the scheduled monthly expiry of June derivatives contracts. Despite this, we reiterate our recommendation to continue with a “buy on dips” strategy, focusing on specific sectors and themes for stock selection.
