The Sensex and Nifty, India’s equity benchmarks, concluded in the green for the fifth successive session on Thursday. This positive trend was driven by notable heavyweights such as Larsen & Toubro, HDFC Bank, SBI, and ICICI Bank. These gains were achieved despite unfavorable global indicators due to lingering worries about prolonged high-interest rates.
Leading Asian markets, including Japan’s Nikkei and China’s Shanghai Composite Index, experienced declines of up to 1% due to worries regarding inflation and a weakening global economic outlook. Concurrently, major European markets displayed modest gains at the time of the Sensex’s closure.
Furthermore, the US dollar maintained its position near multi-month highs compared to various other currencies, while crude oil prices surged beyond the $90 per barrel threshold.
Despite these challenges, the domestic market managed to end the day in positive territory, primarily attributed to late-session buying activities.
Today’s stock market performance can be summarized as follows
The Sensex commenced the trading day 26 points lower at 65,854.25, in contrast to the previous closing level of 65,880.52. During the initial part of the trading session, the market exhibited considerable volatility.
However, a remarkable surge of approximately 416 points occurred in the latter part of the day. Ultimately, the Sensex concluded the day with a gain of 385 points, representing a 0.58% increase, reaching a closing value of 66,265.56. Similarly, the Nifty50 also recorded an upward trend, finishing with a gain of 116 points or 0.59%, closing at 19,727.05.
The top five contributors to the gains in the Sensex index were shares of Larsen & Toubro, HDFC Bank, ICICI Bank, Axis Bank, and SBI.
Mid and small-cap stocks also posted substantial gains during the trading session. The BSE Midcap index closed with a 0.79% increase, settling at 32,374.93, reaching a fresh record high of 32,396.28 during the session. Likewise, the BSE Smallcap index recorded a 0.40% rise, concluding at 38,101.21 and touching a new all-time high of 38,169.65 during the session.
The combined market capitalization of companies listed on the BSE surged to nearly ₹319.1 lakh crore from ₹317.3 lakh crore in the previous session, resulting in investors gaining almost ₹1.8 lakh crore in a single session.
Furthermore, 289 stocks, including Larsen & Toubro, HCL Tech, NTPC, and Tech Mahindra, achieved their fresh 52-week highs during intraday trading on the BSE.
In the meantime, crude oil prices experienced a minor decrease but remained above the $90 per barrel threshold due to expectations of constrained supply.
Top Nifty gainers and losers today
In the Nifty index today, 34 stocks closed higher, while 16 stocks ended in the red.
The top gainers in the Nifty index were Coal India (up 6.92%), Larsen & Toubro (up 4.24%), and IndusInd Bank (up 2.08%).
On the other hand, the top losers in the Nifty pack were Tata Consumer Products (down 2.27%), ONGC (down 0.98%), and Britannia Industries (down 0.90%).
Sectoral indices today
Most sectoral indices recorded gains today. The Nifty Bank index saw a 1.06% increase, while the Nifty PSU Bank index closed with a gain of 1.19%, and the Private Bank index posted a 1% gain.
Nifty Realty experienced a significant surge of 1.48%, while Nifty Financial Services (up 1.02%) and Media (up 1.09%) also concluded with robust gains.
Conversely, Nifty FMCG (down 0.41%), Pharma (down 0.32%), Healthcare (down 0.12%), and Metal (down 0.04%) ended the day in negative territory.
Experts’ views on markets:
Vinod Nair, Head of Research at Geojit Financial Services, noted that the domestic market initially opened on a subdued note due to the influence of weak global cues. However, as the day unfolded, a decrease in US bond yields and a decline in crude oil prices injected a sense of positivity into the market. This positive sentiment was particularly pronounced in the banking sector.
Nair also highlighted that mid- and small-cap stocks managed to maintain investor interest despite their relatively high valuations. However, he cautioned that the consistently weak trade data from China continues to cast a shadow over the global market’s outlook. This suggests that while there were positive developments in the market, there are still concerns about the broader global economic landscape.
Shrikant Chouhan, Head of Research (Retail) at Kotak Securities, remarked that despite a volatile beginning, the markets made a robust recovery, sustaining their upward momentum for the fifth consecutive session. This occurred even as foreign investments remained inconsistent, impacted by a depreciating rupee and global economic uncertainties.
Chouhan also noted that today’s rally occurred in contrast to the weakness seen in Asian and US markets. Investors, it seems, are maintaining optimism regarding India’s long-term growth prospects, which contributed to the market’s positive performance. This suggests that while there may be short-term challenges, there is confidence in the country’s economic potential over the long run.