Indian benchmark indices, the Sensex and the Nifty, continued to trade firmly during the afternoon session on May 23, supported by broad-based buying across sectors. Except for the Nifty Pharma index, all sectoral indices were in positive territory, with the strongest gains coming from technology stocks.
Around noon, the Sensex was higher by 704.36 points, or 0.87 percent, standing at 81,656.35, while the Nifty was up 224.40 points, or 0.91 percent, at 24,834.10. Market breadth was also strong, with about 1,980 shares advancing, 1,288 declining, and 141 remaining unchanged.
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IT stocks led the gains today, managing to brush off worries about a slowdown in the US economy and concerns related to the US fiscal deficit. Analysts at Bernstein said they expect the IT sector to deliver stronger earnings in the current fiscal year compared to FY25. They also noted that the improving forward guidance could translate into stronger revenue performance by FY27.
In contrast, the Nifty Pharma index was the weakest performer, weighed down by Sun Pharma’s guidance for FY26. According to Nuvama Institutional Equities, the delay in the launch of Leqselvi, possible changes in US policies affecting branded drugs, and an increase in tax rates are likely to remain short-term challenges for the stock. The brokerage has maintained a “hold” rating on Sun Pharma and assigned a target price of Rs 1,830 per share.
Looking ahead, analysts at Elara Securities observed that the market which has emerged from the volatility seen between September and May appears fundamentally altered. They explained that while earlier declines were broad-based and driven by high valuations, the recent rebound has been more rotational and supported by earnings growth.
They further commented, “With no visible signs of speculative excess and a more balanced sector leadership, the market looks structurally stronger and is positioned for a steady, low-volatility climb—driven by value and quality—unless new valuation froth starts building up.”
On the technical front, ICICI Securities analysts reaffirmed their view that the Nifty could soon head towards the 25,500 level, with key support placed around 24,200.
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