Indian indices continued their upward movement for the seventh consecutive session on Wednesday, with the Sensex reclaiming 80,000-level for the first time in almost four months. The gains in markets were driven by buying in information technology, auto and pharma stocks.
The BSE’s 30-share Sensex gained 0.65 per cent, or 520.9 points, to close at 80,116.49, after a gap of nearly four months. The broader Nifty50 rose 0.67 per cent, or 161.7 points, to close at 24,328.95.
“The Indian equity market sustained its positive momentum, driven by better outcome from the latest set of IT results and optimistic forward-looking comments,” said Vinod Nair, head of research, Geojit Investments Ltd.
While US-China trade tensions appear to be easing, a rally in US tech stocks has further bolstered overall global market sentiment, Nair said.
After an initial uptick, the Nifty drifted lower; however, a rebound in the latter half pared the losses and helped the index close at 24,328.95, said Ajit Mishra – SVP, research, Religare Broking Ltd.
“A mixed trend across sectors kept traders engaged, with IT and auto performing well, while banking and financials witnessed some profit-taking,” he said.
The broader indices also traded choppily but eventually posted gains in the range of 0.44 per cent to 1.18 per cent.
Among the <, Nifty IT rose 4.34 per cent, Nifty Pharma gained 1.4 per cent and Nifty Auto ended 2.38 per cent up.
snapped its winning streak and closed 0.5 per cent lower at 55,370.05.
The NSE companies that gained the most on Wednesday included (7.74 per cent), (4.76 per cent), (4.44 per cent), (3.87 per cent) and (3.75 per cent).
According to Nair, the mixed domestic Q4 earnings and uptick in crude prices, along with the recent outperformance of the , can trigger some consolidation in the near term.
“We maintain our positive outlook on the Nifty and recommend continuing with a ‘buy on dips’ approach, citing strong support around the 23,700–23,800 zone,” Mishra said.
At the same time, a focus on stock-specific opportunities could be more rewarding in case the index enters a consolidation phase, so align your positions accordingly, he said.
