Final Trade: Market continues upward momentum; Nifty closes at 23,312 and Sensex rises 319 points

The Indian equity markets after opening higher for the third consecutive day sustained its morning gains and ended in the green amid positive global cues. The 30-share Sensex ended with gains of 0.42 per cent or 318.74 points at 77,042.82, while the 50-share Nifty index ended higher by 0.42 per cent or 98.6 points at 23,311.8.

This lower-than-expected US core inflation data has sparked optimism for potential rate cuts by the Federal Reserve, helping lift global risk appetite.

Sectoral performance: PSU Banks lead

Among the various sectors, the PSU banks emerged as the top gainers, with investors showing strong confidence in public sector financial stocks. Adani Group stocks also performed exceptionally well, surging by up to 9% following the disbandment of Hindenburg Research, a U.S.-based short-selling firm. This has alleviated some of the concerns surrounding the group, pushing its stocks higher.

In terms of individual stocks, Zomato, Adani Ports, SBI, UltraTech Cement, and IndusInd Bank were seen making notable upward movements, reflecting strong investor interest. These stocks gained between 1.5% to 4.5%, contributing significantly to the day's positive market sentiment.

Weakness in FMCG stocks

On the other hand, certain stocks within the FMCG sector, like HUL, Nestle India, UITC, and HCL Tech, showed some weakness, pulling down the overall sentiment in that sector. Despite these losses, the broader market trend remained upbeat, with the overall sentiment being driven by expectations of further easing in the U.S. monetary policy.

Global cues and the road ahead

Asian markets also saw positive movement, with the broader risk-on sentiment continuing to play out across the region. As markets digest the implications of U.S. inflation data and its potential effect on Federal Reserve policies, investors are likely to remain cautious, while optimistic views around global growth continue to support regional equity rallies.

With the market still open, investors are advised to stay tuned for any further updates that could impact global and domestic sentiments.