The equity benchmark indices settled at 52-week high on Thursday, tracking firm global cues as investors cheered Nvidia's upbeat earnings. Fresh foreign fund inflows also supported the sentiments.
The Sensex settled 446.21 points or 0.52 percent higher at 85,632.68, while the broader Nifty advanced to 26,192.15, up 139.50 points or 0.54 percent. Intraday, both the indices had hit the 52-week high.
Eicher Motors, Tech Mahindra and Reliance Industries were the top gainers in the Nifty50 pack, rising up to 3 percent, while the Max Healthcare Institute and HDFC Life Insurance Company were among the major laggards, declining up to 1 percent.
Key factors behind market rise
1) FII buying: The foreign institutional investors (FIIs) turned buyers on Wednesday, purchasing equities worth Rs 1,580.72 crore. The inflows added to the positive sentiment in domestic markets.
2) Positive global cues: Asian markets were trading in the green, with South Korea’s Kospi and Japan’s Nikkei 225 each up more than 3 percent. Shanghai’s SSE Composite and Hong Kong’s Hang Seng also advanced. US stocks closed higher overnight.
"Global markets continue to offer a steady and supportive backdrop for India, with no fresh negative triggers emerging overnight. US equities ended firmly in the green, led by a sharp rebound in technology shares after Nvidia’s strong earnings guidance," Ponmudi R, CEO of Enrich Money, told Moneycontrol.
3) Buying in index heavyweight: Shares of index heavyweight Reliance Industries gained 1.5 percent to Rs 1,540.90, providing additional support to the benchmarks. UBS reiterated its “buy” rating on the company, citing expectations of an improvement in its oil-to-chemicals business. Motilal Oswal also maintained a “buy” call and raised its price target, referring to progress in the conglomerate’s new energy segment.
Technical analysis
"The anticipated turn higher evolved without needing to test 25,840 yesterday. This has paved the way for an upmove towards 26,130–26,550. However, a vertical rise is less expected, as momentum indicators are yet to show strength. Upsides may remain limited today, with the downside marker placed near 26,028–25,984," Anand James, Chief Market Strategist at Geojit Financial Services, said.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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