Nifty, Sensex Capture Gains; Rally In Metal, Pharma

The Indian stock market displayed some strength in the Wednesday trading session amid buying in Pharma, Metal and FMCG stocks. The benchmark indices, Nifty and Sensex ended with decent gains despite a dull start. 

The National Stock Exchange (NSE) Nifty 50 index ended 0.38 per cent higher at 24,951 whereas the S&P Bombay Stock Exchange (BSE) Sensex settled 285 points or 0.35 per cent higher at 81,741 levels on the closing bell. 

Nifty Moves

In the Nifty 50 index, 32 stocks advanced in the positive territory and 17 stocks ended in the red territory, while HDFC Bank remained almost unchanged.

Among the winners, JSW Steel topped the index with nearly 3 per cent gain followed by 2.64 per cent, 2.62 per cent and 2.22 per cent gain in Asian Paints, HDFC Life and NTPC respectively. 

Among the losers, Britannia lost almost 1 per cent followed by 0.79 per cent loss in Dr Reddy. Grasim Industries, Reliance Industries and Tata Consumers lost more than half a per cent. 
 

Analyst Note  

"The domestic market is attempting to cross above the psychological threshold of 25,000, as subdued Q1FY25 earnings and stretched valuations are curbing the challenge, while positive global trends and sector rotation are supporting the traction. Positive global sentiment driven by expectations of an easing interest rate cycle by the FED and RBI in the medium term, owing to benign inflation, ignited the rally today. The weakening dollar is showing signs for a rate cut in September," said Vinod Nair, Head of Research, Geojit Financial Services.

Sectoral Movement

In terms of sectoral performance, Nifty Bank rose marginally and Financial Services ended with 0.32 per cent gains, while PSU Banks ended in red. 

Pharma, Metal and Auto and FMCG provided strength to the market with significant gains, while Realty lost 0.37 per cent and IT traded dull. 

The more domestically focussed indices, Mid-cap ended higher with 0.63 per cent gain, whereas Small-cap fell 0.36 per cent.