The equity benchmark indices Sensex and Nifty started the trade on buoyant note after the US Federal Reserve cut its key interest rate by 25 basis points and signalled the possibility of two additional rate reduction this year. However, the momentum was short-lived as the indices fell from the day's high, triggering profit booking during the mid-session. Thereafter, the indices again witnessed a sharp recovery in the final hour of trade.
Markets strengthened further after Chief Economic Advisor V. Anantha Nageswaran said at an event in Kolkata that he expected the punitive U.S. tariffs on certain imports to be lifted after November 30. He added that India’s reciprocal tariffs could ease to the level New Delhi had earlier anticipated—somewhere in the range of 10 to 15 percent.
Sensex rallied 320.25 points or 0.39 percent to settle at 83,013.96. During the day, it jumped 447.5 points or 0.54 percent to 83,141.21. The Nifty climbed 93.35 points or 0.37 percent to 25,423.60, it's 10-week high.
Eternal, Sun Pharma, Infosys, HDFC Bank, HCL Tech, Hindustan Unilever, Power Grid, ITC and Adani Ports were the major gainers. Sectoral indices PSU banks, realty and OIL & Gas realty were down up to 0.16 per cent.
On the positive side, Nifty IT, pharma and FMCG indices advanced. Optimism over the US Federal Reserve’s signal of two more rate cuts this year boosted IT counters, improving outlook for outsourcing and technology spending.
The Bank Nifty index extended its winning streak to the 12th straight session. In the broader market, midcap and smallcap indices gained.
The Nifty Smallcap 100 was up 0.29 per cent, while the Nifty Midcap index advanced 0.38 per cent.
Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities, noted "the broader market continued its positive momentum, with Nifty Midcap and Nifty Smallcap 100 indices extending their winning streak for the 10th consecutive session. However, market breadth remained slightly negative, as the advance/decline ratio tilted in favour of the decliners. Out of the Nifty 500 universe, 234 stocks managed to close in the green, indicating selective buying across sectors."
On technical front, Shah added "The benchmark index Nifty witnessed a sharp recovery in the final hour of Thursday’s trading session, resulting in the formation of a small-bodied candle with a long lower shadow on the daily chart. This candle reflects buying interest at lower levels, suggesting that bulls are defending key support zones. From a technical standpoint, the index is currently trading above all major moving averages, and momentum indicators such as RSI and MACD are also pointing towards continued bullish strength. This confluence of signals reinforces the positive undertone in the market. Going ahead, we expect the Nifty to test the levels of 25600, followed by 25750 in the short term. On the downside, the zone between 25300–25270 is likely to act as a crucial support area."
In Asian markets, South Korea's Kospi and Japan's Nikkei 225 index settled over 1 percent higher while Shanghai's SSE Composite index and Hong Kong's Hang Seng ended more than 1 percent lower.
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