In a volatile session, Indian equity benchmark indices closed higher, buoyed by a rally in metal and IT stocks and positive CPI inflation data from India and the US. Retail inflation in India fell to 3.16% in April, marking the sixth consecutive monthly decline. The BSE Sensex climbed 182.34 points to close at 81,330.56, while the NSE Nifty50 ended at 24,666.90, up by 88.55 points.
Notably, the broader markets outperformed the benchmarks, with the BSE Midcap rising 1.19% and the BSE Smallcap surging 1.63%. Sectoral indices like Nifty Metal, Realty, Oil & Gas, IT, Energy, and Media were the top gainers, with increases of up to 2.46%. Nifty Auto, Healthcare, Pharma, Consumer Durables, and FMCG also saw gains of up to 1%.
However, Nifty Bank and Financial services experienced marginal declines of 0.25% and 0.23%, respectively. Among the Sensex constituents, 22 out of 30 stocks ended higher, with Tata Steel, Tech Mahindra, Eternal, Maruti Suzuki, and Infosys leading the gains. On the flip side, Asian Paints, Kotak Mahindra Bank, Tata Motors, Power Grid, and NTPC were among the laggards.
India VIX, the volatility gauge, dropped 5.61% to 17.18 points. On the BSE, advancing stocks outnumbered declining ones, with 2,779 stocks advancing, 1,155 declining, and 159 unchanged. A total of 4,093 stocks were traded, with 82 hitting a 52-week high and 30 hitting a low. Additionally, 309 stocks hit the upper circuit, while 136 were in the lower circuit.
The positive market sentiment was supported by better-than-expected inflation data and sectoral performances. The rally in metal and IT stocks, coupled with declining retail inflation, contributed to the market’s upward trajectory. Amidst global economic uncertainties, the Indian equity market showcased resilience, with investors reacting positively to market developments.
Experts attribute the market’s bullish trend to improving economic indicators and corporate performances. The focus on key sectors like metal, IT, and energy reflects investor confidence in the growth potential of these industries. The positive market breadth indicates a broad-based rally, signaling optimism among market participants.
Historically, market rallies driven by specific sectors have often translated into broader market gains, indicating sectoral leadership in driving overall market performance. The current market scenario underscores the importance of monitoring sectoral dynamics and economic indicators to gauge market sentiment and potential investment opportunities.
As the Indian equity market continues to navigate global economic challenges and domestic factors, the resilience demonstrated in the recent rally underscores the market’s ability to weather uncertainties. The performance of key indices like the BSE Sensex and NSE Nifty reflects the underlying strength of the Indian stock market and its potential for sustained growth amidst evolving market conditions.