Return of bulls: Sensex rallies 900 points, Nifty crosses 24,150; pharma, infra, commodities lead – all eyes on GDP

Bharti Airtel, Cipla, Sun Pharma, Adani Ports, and M&M were the top gainers on the Nifty.

Nifty and Sensex staged an impressive comeback on November 29, recouping losses from the previous session's selloff as a surge in pharma, infra, energy, and auto stocks lifted market sentiment, setting the stage for a strong close to the week.

At close, the Sensex was up 702.50 points or 0.89 percent at 79,746.24, and the Nifty was up 209.20 points or 0.87 percent at 24,123.40. About 2,205 shares advanced, 1,528 shares declined, and 85 shares unchanged.

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"This is just a bounce back and nothing more than that," Ajit Mishra, Senior Vice President at Religare Broking, told Moneycontrol. "A host of negative factors—mainly the FII selling—is yet to be contained, and investors should wait and watch for a decisive trend before entering the market," he added. Mishra believes that the only reasonable pockets are IT and Banking, and if a deterioration in this space takes place, it would be clear that bears are reigning supreme in the market.

Markets saw their sharpest decline in two months on November 28, as heavy foreign institutional investor (FII) selling weighed on sentiment. Investor anxiety deepened with concerns over a slower pace of rate cuts amid persistent inflation. The Federal Reserve’s preferred inflation gauge, the Core PCE Price Index, climbed 2.8 percent year-on-year in October, dampening hopes for immediate policy easing. Adding to the uncertainty, escalating tensions from missile strikes by Russia further unsettled markets, compounded by volatility from Thursday’s derivatives expiry.

Also read: BSE's new F&O expiry cycle will help ease volatility and free capital, say experts

Among all gainers, Shares of three Adani Group companies stood out--Adani Green Energy, Adani Energy Solutions, and Adani Total Gas jumped as much as 23 percent in the afternoon on November 29 following their inclusion in the National Stock Exchange’s futures and options (F&O) segment, starting today. Among the three, shares of Adani Green tracked the strongest upside and hit its 23 percent upper circuit for a third straight session.

Reliance Industries also gained nearly 2 percent after its U.S.-based subsidiary, Reliance Finance and Investments USA LLC, inked a stock purchase agreement with Wavetech Helium, Inc., acquiring a 21 percent stake in the helium exploration and production firm. Following the news, Morgan Stanley reaffirmed its confidence with an ‘overweight’ rating on Reliance.

Read more: Mahindra, Maruti may leave Tata Motors behind in the second lap as EV players shift gears

Telecom giant Bharti Airtel also shone, surging over 4 percent to lead the Nifty after ICICI Securities issued a ‘buy’ recommendation. The brokerage sees an 18 percent upside from Airtel’s previous close, projecting a robust 14.8 percent compound annual growth rate (CAGR) in EBITDA over the next two years.

Auto major M&M shares rose nearly 3 percent, recovering almost all losses from the previous session. A host of brokerages remain bullish on the stock following a host of launches that consolidate M&M's position as one of the fastest-growing manufacturers in India. It launched two maiden 'Born Electric' SUV vehicles based on its latest 'INGLO' platform, marking a shift in the company's electric mobility journey.

The broader market also showed resilience. Mid- and small-cap indices edged up 0.3 and 0.7 percent each, outperforming the benchmarks. Year-to-date, these indices have surged 21 percent, far outpacing the NSE Nifty’s 11 percent rise. Market participants believe that after a healthy correction, mid-and small-cap stocks could attract fresh buying and continue to outperform in the weeks ahead.

Investors, however, remain cautious ahead of key economic data releases tomorrow, including India’s Q2 GDP, China’s manufacturing PMI, and Eurozone inflation. A calming of geopolitical tensions could rekindle optimism, though many expect the broader market to remain range-bound in the near term.

During the afternoon, Nifty Pharma, Energy, Infra, and Auto rose 1–2.4 percent in afternoon trade. A rally in Sun Pharma, Dr Reddy's, and Divis Labs lifted the index. Other gainers included Metal, IT and FMCG, rising up to 1 percent.

The PSU Bank index pared partial losses to end 0.5 percent lower. Nifty Bank edged higher by 0.2 percent, led by gains in HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra. Nifty Realty stocks also slipped, falling prey to profit booking after rallying 7 percent in the past week.

"Key levels to watch out for the rest of the year are 23,550 and 24,350. If the Nifty goes past the 24,350 mark, we could see a sharp upmove to 24,700," Mishra said, adding that a decisive move below 23,550 could heavily dampen sentiment.

Meanwhile, Mandar Bhojane of Choice Broking said, "Immediate support is placed at 23,800 and 23,680, which align with strong Fibonacci levels. These zones could act as potential reversal points, offering a buying opportunity if confirmed by price action. On the upside, 24,350 serves as immediate resistance. A sustained move above this level could propel the index toward 24,800 and 25,000, unlocking significant upside potential."

Bharti Airtel, Cipla, Sun Pharma, Tata Consumer Products, and M&M were the top gainers on the Nifty. Laggards included Power Grid, Shriram Finance, HDFC Life Insurance, Nestle India and Hero MotoCorp.

Disclosure: Moneycontrol is part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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