Benchmark equity indices ended Thursday’s session in the green, driven by strong performance in PSU banking, power, and metal stocks. Positive cues from global markets and easing US inflation data contributed to the upward momentum, supporting investor sentiment.

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The BSE Sensex gained 318.74 points to close at 77,042.82, while the NSE Nifty50 advanced by 98.60 points, finishing at 23,311.80. Both indices sustained their positive trajectory throughout the day, bolstered by expectations of potential rate cuts by the Federal Reserve after mild US inflation data. Additionally, developments such as a reduced trade deficit and a temporary ceasefire agreement in the Middle East further lifted market morale.

Sectoral snapshot: Gains and pressures

Eleven out of sixteen sectoral indices closed in positive territory, with PSU banks leading the rally. Other gainers included power, realty, and metals sectors, which saw robust buying interest. Midcap and smallcap indices also mirrored this trend, closing higher as bargain buying dominated the broader market after the recent correction.

However, FMCG stocks faced some selling pressure, which capped gains for the indices. Weak growth data from the UK dampened a portion of the optimism, resulting in mixed investor sentiment toward global markets.

Broader market outlook

The government's post-market approval of the 8th Pay Commission is expected to further fuel optimism, potentially driving gains in the next trading session. Additionally, analysts anticipate key support levels for Nifty50 between 23,250 and 23,150, with resistance expected around 23,430 to 23,480 in the upcoming intraday session.

Despite higher valuations compared to global indices, the market exhibited resilience, reflecting robust participation across segments. Participants are advised to maintain a cautious approach, focusing on selective opportunities amid ongoing global uncertainties.

The week ahead is expected to remain eventful, with economic data and corporate earnings likely to influence trading patterns.