The midday trading session saw a significant uptick in both the Sensex and Nifty indices, with gains exceeding 1%. Leading the charge were sectors such as banking and oil & gas, driving the bullish momentum. However, FMCG, pharma, and healthcare stocks, which had enjoyed investor favor in the previous session, experienced a pullback. Conversely, capex-related stocks, including PSUs, realty, and capital goods, rebounded after enduring notable declines over the past two days.
By 11:00 am, the Sensex had surged by 847 points, marking a 1.1% increase to reach 75,229, while the Nifty 50 climbed 269 points, or 1.2%, to stand at 22,889. Market breadth remained positive, with 2,757 shares advancing, 481 declining, and 105 remaining unchanged.
Market experts attributed today’s rally to a combination of factors, including clarity on India’s general elections and positive global cues. The broader markets also outpaced the benchmarks, with BSE Midcap and Smallcap indices registering gains of over 3%.
Sector-wise, FMCG, pharma, and healthcare stocks experienced a reversal from their previous gains, while capex-related sectors saw renewed investor interest. Notably, shares of PSU companies witnessed a strong comeback, surging between 4% to 14%.
Among the sectoral indices, Nifty Realty, Nifty PSU Bank, and Nifty Energy emerged as top gainers, recording increases ranging from 3% to 5%.
From a fundamental perspective, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted the market’s return to normalcy after recent volatility. He highlighted favorable global conditions, including the rising possibility of rate cuts by the Fed amid signs of a weakening labor market in the US.
However, Vijayakumar cautioned that near-term political developments could continue to influence market sentiment. Concerns lingered regarding the BJP’s dependence on allies potentially impacting economic reforms and long-term growth prospects.
On the technical front, Deven Mehata, Research Analyst at Choice Broking, outlined key support and resistance levels for the Nifty 50 index. Mehata suggested that while support levels were at 22,500, 22,400, and 22,200, immediate resistance could be encountered at 22,750, followed by 22,800 and 22,900.