Indian equity indices ended with strong gains on September 9 with Nifty above 24,850, led by IT, pharma, FMCG stocks.
On the back of positive global markets, Indian indices opened with a gain and despite intraday profit booking the indices managed to hold on to the gains with Nifty inching closer to 24,900, intraday, before closing near day's high.
At close, the Sensex was up 314.02 points or 0.39 percent at 81,101.32, and the Nifty was up 95.45 points or 0.39 percent at 24,868.60. BSE Midcap and Smallcap indices were up 0.2% each.
Infosys, Dr Reddy's Labs, Wipro, Tech Mahindra, Adani Ports were among major gainers on the Nifty, while losers included Eternal, Trent, Jio Financial, Tata Motors, Titan Company.
On the sectoral front, IT index up 2.8%, pharma and FMCG up 0.5% each, while oil & gas, realty indices down 0.3% each.
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In stock-specific action, Infosys shares jumped 5% ahead of board meet to consider share buyback proposal, Voltamp Transformers shares slipped 2.6% post 8.12 lakh shares (8% equity) change hands in block deal, RailTel Corporation of India rose 4% on winning multiple orders worth Rs 713.55 crore, FSN E-Commerce Ventures (Nykaa) shares fell 2.4% after 1.23 million shares change hands in block trade.
More than 130 stocks touched their 52-week highs on the BSE, including Cummins India, Maharashtra Scooters, Eicher Motors, Muthoot Finance, Aditya Birla Capital, Maruti Suzuki, Bosch, M&M, Endurance Technnologies, Manappuram Finance, among others. Click to View More
Outlook for September 10
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
After showing weakness from the highs on Monday, Nifty continued with range bound action with positive bias on Tuesday and closed the day with modest gains of 95 points. After opening with an upside gap of 90 points, the market shifted into a narrow high low range movement that lasted for the whole session. The opening upside gap remains unfilled and Nifty closed at the highs.
A small candle was formed on the daily chart with minor upper and lower shadow and with almost identical open and close. This market action indicates a formation of doji type candle pattern. But, having formed this pattern amidst a broader range bound action, the predictive value of this pattern could be less.
The underlying trend of Nifty remains positive with choppy movement. Nifty is apparently creating base for decisive upside breakout of important resistance zone of around 24900-25000 levels (down sloping trend line and recent weekly highs). Immediate support is placed at 24750.
Vaibhav Vidwani, Research Analyst at Bonanza
Today, the Indian stock market closed on a positive note, with both the Nifty 50 and Sensex ending higher buoyed mainly by robust gains in the IT sector, alongside favourable global cues and renewed investor confidence in large cap names. The Nifty 50 settled at 24,868.6, rising 95 points (+0.39%), while the Sensex closed at 81,101.32, up 314 points (+0.39%).
The positive close was propelled by strong buying in IT stocks, with the Nifty IT index rallying 2.8%. The rally gained traction after Infosys announced a proposed share buyback, which improved sentiment across the sector.
Global equity optimism, on account of expectations for US Federal Reserve interest rate cuts and strong recent performances of US tech indices like Nasdaq, created a tailwind for domestic technology stocks. Additionally, a steady rupee and stable oil prices added to the upbeat market mood. Sectoral rotation saw midcaps remain subdued and profit-booking in autos after Monday’s sharp rally.
Broad-based gains in IT, pharma, and FMCG stocks lifted the benchmarks, while realty, auto, and oil & gas sectors saw some selling. Market breadth was mixed, while large caps shone, midcap and smallcap participation was muted. Investors are closely watching upcoming inflation data from India and the US for clues on the Federal Reserve’s rate outlook, which will remain key for short term direction.
The proposed second weekly derivatives expiry on Nifty supports current volumes and volatility. With a positive undertone and sectoral rotation fueling resilience in large caps, near term market trajectory is likely to hinge on global monetary signals and domestic macro numbers.
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