Nifty closes near 17,500, Sensex gains over 650 points in closing trade ahead of RBI MPC's meeting outcome; auto, banking gain most

Domestic equity markets extended the gains on Wednesday as the benchmarks ended more than 1 per cent higher ahead of the Reserve Bank of India's monetary panel committee (MPC) meeting outcome on Thursday morning.

The Nifty was seen attempting 17,500 after clearing crucial hurdle of 17,300, while the Sensex gained over 600 points amid good show put up by auto, banking and IT shares. Benchmarks Nifty and the Sensex closed at 17,463.80 and 58,465.97 respectively.

Rupak De, Senior Technical Analyst at LKP Securities said,''Nifty has formed a green candle after a Dragonfly Doji pattern on the daily chart suggesting a short-term bullish reversal. On the higher end, immediate resistance is visible at 17530. A decisive move above 17530 may induce a rally towards the recent peak of 17775-17800. On the lower end, support is placed at 17315.''

All broader market indices ended in the green as some pressure was seen on PSU Banks and Oil & gas segments.  

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"The domestic market joined the global rally with all major sectors barring PSU Banks trading with gains. US stocks rallied yesterday shrugging off concerns over rising crude oil and rate hike worries ahead of the release of US inflation data," said Vinod Nair, Head of Research at Geojit Financial Services. 

The RBI’s policy announcement will be the key focus tomorrow as domestic inflation and policy tightening by global central banks would pressurize the central bank to adopt a similar stance, said Nair. 

Meanwhile, Coal India and Maruti were top gainers on Nifty50 and the Sensex respectively. Hindalco, IOC, Bajaj Auto, IndusInd Bank, HDFC Bank, Titan, Bajaj Finserv, HCL Tech, Tech Mahindra, Bharti Airtel and Wipro were other gainers on the two indices in a positive market.  

ONGC, BPCL, SBI Life, ITC, PowerGrid and Sun Pharma were some stocks that declined.