Indian equity indices ended on a higher note as they faced buying on all the counters on Friday. The NSE Nifty 50 rose 429 points or 1.76%, than its previous close, to settle the day’s trading at 24,835, just 20 points away from the all-time high. While, the BSE Sensex closed 1293 points or 1.62% higher at 81,333. All the sectoral indices closed the day in the green. Except for three stocks, all the constituents of the Nifty 50 closed the session on a higher note.
The sharp rebound of domestic indices indicates that India remains a good long story to bet on, said Prashanth Tapse, Senior Vice President of Research at Mehta Equities. Its economy continues to show strong resilience in spite of global uncertainty and geopolitical tensions. “Also, most of the blue chips and mid-cap companies have reported better earnings, which is providing a major impetus to markets,” said Tapse.
Both indices closed the week on a positive note. Nifty 50 rose 1.50%, while Sensex inched 0.8% higher for the week.
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Sectoral Indices clock steady gains
Bank Nifty advanced 407 points or 0.80% to end the session at 51,296. Similarly, Nifty Midcap 100 added more than 1000 points or 1.81% settling the day’s trading at 57,768. In the broader markets, smallcap and midcap stocks closed in the green.
“The domestic market experienced a substantial rebound on the start of the next month’s expiry, recovering from the recent losses incurred following the Union budget. This upturn was driven by positive reactions to the better-than-expected US GDP, which augurs well for global demand. Investors are adopting buy on dip strategy, refocusing on quarterly earnings and stock-specific trends,” said Vinod Nair, Head of Research at Geojit Financial Services.
“This surge was fueled by improved sentiment following robust performances in IT and Metal stocks, as well as significant rollovers to the August series. Broader indices also reflected this strength, showing substantial gains,” said Ajit Mishra, Senior Vice President of Research at Religare Broking. “The current trend suggests that bulls are in control, and we are likely to see further advances in the coming sessions. However, it is advised to remain selective, focusing on index majors and large midcaps.”
Bank Nifty
Talking about the technical side of the banking index, Rupak De, Senior Technical Analyst at LKP Securities, said that on the daily chart of Bank Nifty, an outside day pattern has formed, suggesting a possibility of price expansion. “Additionally, the index has reclaimed the 50-period exponential moving average. Over the short term, the trend might witness a bullish reversal. Going forward, a move above 51,500 might induce a decent rally towards 52,500. On the lower end, support is placed at 51,000,” said De.
