Banking stocks lift Sensex, Nifty nears 25,300 while all sectors, barring metals, in green

Nifty, Sensex are poised to end the week on a strong note.

After opening on a quiet note, Dalal Street shrugged off morning jitters to trade firmly in the green on the last trading session of the week. The Nifty 50 approached the 25,300 mark, while the 30-share Sensex index gained 300 points.

At 12:13 p.m., the Sensex was up 293.19 points or 0.36 percent at 82,465.29, and the Nifty was up 98.50 points or 0.39 percent at 25,280.30. About 2,206 shares advanced, 1,432 shares declined, and 127 shares unchanged.

The top contributors to the gains on the headline indices were SBI, HDFC Bank, Axis Bank and ICICI Bank shares.

All sectors barring the metals pack traded in the green. The realty, healthcare, PSU Bank, pharma and consumer durables indices posted gains of over 1.5 percent each. The FMCG, auto, and banking bank were higher between 0.4 to 0.8 percent each.

The broader markets also posted strong gains, outperforming the benchmarks. The Nifty Smallcap 100 gained 0.8 percent, while its midcap peer rose 0.6 percent in trade.

The market's mood remains cautiously optimistic, as per experts, which is supported by renewed global cues and healthy domestic momentum, although volatility and external headwinds may continue to cap aggressive moves. However, positive developments across the globe and the shift in FII strategy (FIIs were buyers in the cash market in the last three trading days) bode well for the market.

"Even though valuations continue to be relatively high compared to most other markets, short-covering can take the market higher. This is a highly probable event since the short position in the market continues to be high," said VK Vijayakumar, Chief Investment Strategist, Geojit Investment.

"The area between 24,900 and 24,950 has evolved into a critical “buy-on-dips” pocket. On the upside, a clear breakout above the 25,200–25,250 resistance band is essential to trigger a strong short-covering rally, while failure to do so could keep sellers dominant in the near term," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

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