Sensex rises over 500 pts from day's low, Nifty above 23,250 as IT, auto stocks surge; mid, smallcaps outshine

Wipro, UltraTech Cement, Tech Mahindra, Sun Pharma, and Tata Consumer Products gained the most on the Nifty.

The benchmark indices, Nifty and Sensex, held onto gains but remained off their intraday peaks on January 23, buoyed by a sharp rally in IT and auto stocks that lifted market sentiment. However, weakness in private and public sector banks kept the overall rally in check.

In the broader market, a sigh of relief emerged as mid and small-cap indices rebounded, rising 1.7 percent and 1.2 percent, respectively. This recovery followed a sharp 2 percent plunge in both indices during the previous session.

"High-beta segments like mid- and small-caps are undergoing steeper corrections. Mixed earnings in these spaces are also capping the sustainability of rebounds at higher levels," noted Ruchit Jain, Vice President of Technical Research at Motilal Oswal.

At 12:30 pm, the Sensex was up 302.04 points or 0.40 percent at 76,707.03, and the Nifty was up 102.40 points or 0.44 percent at 23,257.75. About 2078 shares advanced, 1279 shares declined, and 121 shares unchanged.

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The market is shaped by two notable trends. First, institutional activity remains consistent, with Foreign Institutional Investors (FIIs) persistently selling while Domestic Institutional Investors (DIIs) continue to buy. Second, there’s a clear preference for quality, as large-cap stocks show resilience even as the broader market faces weakness, V K Vijayakumar, Chief Investment Strategist at Geojit Finanical Services said. With the dollar index and US bond yields remaining elevated, FIIs are unlikely to shift to buying, which could limit the scope for a market rally despite oversold conditions.

Among sectoral indices, Nifty IT emerged as one of the best performers, rising over 1 percent, buoyed by strong Q3 results and insulation from Trump-era protectionist tariff policies. Heavyweights like Infosys, TCS, HCL Tech, Tech Mahindra, Wipro, and Coforge drove the gains. Nifty Pharma also rose over 1 percent led by gains in Sun Pharma and Cipla. Nifty Auto was also in the fast lane, rising more than 1 percent led by four-wheelers like M&M, Tata Motors and Maruti Suzuki. The FMCG index, which tanked over a percent in the morning, erased losses to trade 0.4 percent higher.

Nifty Bank and PSU Bank traded marginally lower while oil and gas stocks slipped half a percent.

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Shares of Persistent Systems gained over 10 percent after the company reported robust growth in its consolidated net profit and revenue for the December quarter, prompting mixed reactions from brokerages. The IT major posted a consolidated net profit of Rs 372.99 crore, marking a sequential rise of 15 percent and a 30 percent year-on-year increase. Its revenue also impressed, growing by 6 percent QoQ and 23 percent YoY to Rs 3,062.3 crore.

Shares of Pidilite Industries skyrocketed 8 percent, fueled by the company’s solid performance in the third quarter of FY25. Pidilite reported a 9 percent year-on-year (YoY) increase in net profit, reaching Rs 557 crore, while revenue from operations climbed 7.6 percent to Rs 3,368.91 crore. The performance was driven by growth in both its Consumer & Bazaar (C&B) and B2B segments.

Larsen & Toubro Ltd (L&T) shares fell as much as one percent on Thursday, while Mazagon Dock Shipbuilders Ltd shares surged over 5 percent after reports that L&T’s bid for India’s Rs 70,000 crore P75(I) submarine project was disqualified, leaving Mazagon Dockyards Ltd (MDL) as the sole qualifying contender. L&T has been vying for a share of the multi-billion-dollar defence manufacturing programme aimed at boosting indigenous capabilities.

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"Resistance levels persist at regular intervals, with a recent higher range around the 23,300 - 23,400 zone, corresponding to the 20 DEMA, acting as an immediate hurdle. While it’s too early to call for a decisive recovery, a breakout above the upper boundary of the falling wedge, currently placed at a dynamic level near 24,000 and aligning above all major moving averages, would be essential to trigger sustained bullish momentum," Sameet Chavan, Head of Technical Derivative Research at Angel One, said.

"While some near-term relief is expected, the market remains on uncertain ground, and volatility may persist due to several key triggers, including upcoming earnings announcements. In this scenario, the 23,000–22,900 support zone is followed by an additional support zone around the 22,800–22,700 mark," he added.

Wipro, UltraTech Cement, Tech Mahindra, Sun Pharma, and Tata Consumer Products gained the most on the Nifty. Laggards included BPCL, Reliance Industries, HUL, SBI, and Dr Reddy's.