FINAL TRADE: Sensex ends volatile session up 359 pts, Nifty50 reclaims 21,255 led by financial, energy shares

Stock market today: Domestic equity benchmarks staged a recovery in the second half of yet another volatile session on Dalal Street on Thursday, December 21. Both headline indices finished the day with gains of 0.5 per cent after gyrating in a wide range around the flatline amid choppy trade. The Sensex ended 358.8 points higher at 70,865.1 and the Nifty50 settled at 21,255.1, up 104.9 points from its previous close, aided by a rebound in financial and energy shares, after apparent profit booking in blue chips in the previous session. 

The high-beta Nifty Bank index, whose 12 constituents include SBI, HDFC Bank, and ICICI Bank, closed at 47,840.2, up 394.9 points or 0.8 per cent from its previous close.

"After a subdued start, the market reversed from the day’s low amid buy-on-dips strategy. However, the overall trend is subdued, FIIs stayed muted ahead of a festive break and global markets traded on a negative note ahead of the announcement of the US GDP data today," Vinod Nair, Head of Research at Geojit Financial Services said.

Globally, a rally driven by positive macroeconomic data and easing inflation, supporting bets of earlier-than-expected reduction in benchmark interest rates, appeared to be losing steam. 

"Some consolidation is warranted in the near term due to peak valuation. A gradual rise in oil prices along with concern over high domestic food inflation may have a hindrance to the stretched rally of the last 2 months," Nair added.

Broader indices Nifty Midcap 100 and Nifty Smallcap 100 finished in the green, up 1.7 and 1.9 per cent, respectively. Power Grid, BPCL, Britannia and Apollo Hospitals were among the top gainers in the Nifty basket, finishing around two per cent higher each. On the other hand, Bajaj Auto, Bajaj Finance, Axis Bank and HCL Tech were among the top losers.

Global markets

European shares fell on Thursday, led by losses in real estate and automobile stocks following a sharp selloff on Wall Street in the previous session, while investors awaited more economic data from the US for further clues on the global interest rate path. The pan-European STOXX 600 index was down 0.3 per cent at the last count, and on track to snap a two-day winning streak. 

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