Sensex and Nifty ended in positive territory for the second session this week, on September 10, boosted by strong buying in IT, telecom, power, and healthcare stocks.
At close, the Sensex was up 361 points, or 0.4 percent, at 81,921, while the Nifty gained 104 points to reach 25,041. Market breadth remained positive, with 2,473 stocks advancing, 1,300 declining, and 98 remaining unchanged.
"Nifty remained volatile throughout the day, unable to sustain levels above 25,100, pointed out Rupak De, Senior Technical Analyst at LKP Securities. He said that the market sentiment is expected to stay weak in the near term unless Nifty manages a close above 25,100. "On the lower side, support is seen at 24,900 which if breached, the index may decline further towards 24,750," he added.
Meanwhile, Ambareesh Baliga, an independent market analyst told Moneycontrol, "I think the markets are clearly going with liquidity because liquidity is flowing in, which means any correction is being bought into."
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Today's rally was also fueled by a strong performance in the mother market, where all three major US indices closed over 1 percent higher overnight, rebounding from their steepest weekly losses since March 2022. The tech-heavy Nasdaq rose 1.3 percent on September 9, which, along with expectations of a rate cut by the Federal Reserve following the September 17-18 FOMC meeting, lifted the Nifty IT index by more than 2 percent.
Motilal Oswal's research report, highlighting signs of recovery in the IT services sector after a prolonged challenging period, further boosted positive sentiment in the IT pack. According to the report, the sector is emerging from a 'harsh winter', with the groundwork being laid for sustained growth over the next two to four years. The brokerage anticipates a new wave of growth, fueled by the continued expansion of Global Capability Centers (GCCs), opportunities in Generative AI, and cloud services. Leading the gains in the Nifty IT index were TCS, Infosys, and Coforge.
Shares of several pharmaceutical companies also surged buoyed by the double treat of a GST cut on cancer drugs and the passage of the much-awaited draft US Biosecure Act.
Among the top gainers in the Nifty 50 were Wipro, Bharti Airtel, LTIMindtree, and Divis Labs, all rising 2-5 percent.
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On the flip side, Bajaj Finance, Shriram Finance, Bajaj Finserv, SBI Life, and HDFC Life were the biggest losers, declining 1-5 percent. Life insurance stocks came under pressure in today's session after the companies posted modest growth in premiums for August. Additionally, the GST Council's decision to defer discussions on life insurance until the November meeting added to the pressure.
Excluding Nifty PSU Bank, the remaining 12 sectoral indices closed in the green. The broader market outpaced the benchmark indices, with the BSE Midcap rising by 0.5 percent and the Smallcap index climbing 1.5 percent. Meanwhile, the volatility gauge, India VIX, dropped by nearly 7 percent, settling at 13.3 in today's session.
Investors are now focused on the US Consumer Price Index (CPI) report, set to be released on September 11, and the initial jobless claims data due on September 12. The data will offer insights into inflation trends just before the FOMC meeting. Markets will keep a close eye on how the US presidential debate scheduled for tonight, between Democrat Kamala Harris and Republican Donald Trump, unfolds.
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