FINAL TRADE: Nifty settles at 21,349, Sensex gains 242 pts; IT shares rise

Stock market today: The domestic blue-chip indexes Nifty 50 and Sensex extended their rally on Friday, December 22, thanks to buying in information technology (IT) and auto stocks, as Dalal Street enters a long weekend on account of Christmas.

The Nifty50 ended 94.35 points, or 0.44 per cent, higher at 21,349.4, and the Sensex finished the day 241.86 points, or 0.34 per cent, stronger at 71,106.96. The Nifty Bank index, whose 12 constituents include SBI, HDFC Bank and ICICI Bank, slipped in red, 348.3 points, or 0.73 per cent, lower at 47,491.85.

Amid broad market indices, the more domestically-focussed Nifty Small-cap 100, and Nifty Mid-cap 100 advanced in the seession to end with gains of 1.08 per cent and and 0.73 per cent, respectively. Meanwhile, Nifty IT advanced on Friday, the index jumed 2.27 per cent or 791.75 to finsish at 35,637.8 amid broad based buying in the sector. 

Wipro, HCL Tech, Bajaj Auto and Hindalco were among the top gainers in the Nifty basket, trading with gains of around 6-2 per cent. On the other hand, Grasim, HDFC Bank, Bajaj Finance and State Bank of India were among the top losers, down around 1-4 per cent.

"The 'buy on dips' strategy continues to drive investors during the subdued week. Mid and small caps remain in the limelight, benefiting from ease in oil prices and the anticipation of a potential rate cut in CY24, supported by slower-than-expected US GDP growth and weakness in the dollar, signalling early rate cuts," Vinod Nair, Head of Research at Geojit Financial Services said.

"Realty and Auto sectors shine, while PSU banks outperform peers on account of improvements in balance sheets and profitability. Despite a premium valuation, the short-term positive trend persists, supported by a strong revival in FIIs buying & stock specific actions. Heading into the festive season and year-end, we can anticipate a range-bound trade scenario with limited data points," he added.

Global Market

European shares fell on Friday, dragged by technology and sportswear makers, as investors assessed the potential disruption from Red Sea attacks on global trade and awaited key U.S. inflation data to back bets of lower rates next year. The pan-European STOXX 600 index fell 0.2 per cent by 0817 GMT, set to mark its weakest weekly performance in six. The Netherlands-based Prosus slid 14.5 per cent, pulling the technology sector down 1.2 per cent.