Nifty, Sensex Rise For Second Day As RIL, Infosys Share Prices Lead: Market Wrap

The Nifty 50 and Sensex indices showed positive momentum for the second consecutive day, primarily driven by the strong performance of Reliance Industries Ltd. and Infosys Ltd. Despite a rocky start, the markets eventually rebounded, showcasing resilience.

Market Performance Overview

The Nifty 50 concluded the trading session at 24,274.00, which is an increase of 0.59%, reflecting a gain of 142.90 points. Similarly, the Sensex finished the day at 80,248.08, marking a rise of 0.56%, amounting to an increase of 445.29 points.

In the early trading hours, the Nifty 50 had dipped to 24,008.65, showing a decline of 0.51%, while the Sensex dropped to 79,743.87, a decrease of 0.62%. This initial downturn was attributed to the Indian rupee hitting a record low against the US dollar, alongside concerns about India's GDP and geopolitical tensions related to the US President-elect's potential tariff threats on BRICS nations.

Market Recovery

As the session progressed, buying interest intensified, leading the Nifty 50 to rise sharply to 24,273.80, equivalent to a 0.71% increase, while the Sensex reached 80,337.82 with a corresponding rise of 0.67%. Analysts pointed out that foreign institutional investors (FIIs) continued to sell in the cash market, which, combined with weaker-than-expected domestic GDP data, may pose challenges for the equity markets in the medium term.

Aditya Gaggar, director at Progressive Share Brokers Pvt., noted that while December began on a cautious note, strengths in the Auto and Pharma sectors, along with select major stocks, supported the recovery of the indices from lower levels. He projected that the Nifty is nearing significant resistance levels, particularly the neckline of an Inverted Head & Shoulders pattern, with the immediate resistance set at 24,350.

Sector Performance

Among the Nifty 50, key contributors to the index's gains were stocks from Reliance Industries, HDFC Bank Ltd., Infosys Ltd., UltraTech Cement Ltd., and Mahindra & Mahindra Ltd. Conversely, declines were noted in shares of NTPC Ltd., HDFC Life Insurance Co., Hindustan Unilever Ltd., Kotak Mahindra Ltd., and Cipla Ltd.

On the National Stock Exchange (NSE), 10 out of 12 sectors recorded gains, with the Realty sector leading the upward trend, while the PSU Bank sector faced the most significant declines. Broader markets outperformed, with the BSE Midcap index rising by 1% and the BSE Smallcap index climbing by 0.9%.

Market Sentiment

The market breadth appeared favorable, with a decisive number of stocks advancing. On the BSE, 2,509 stocks advanced, while 1,546 declined and 182 remained unchanged. This market behavior indicated a strong buyer sentiment.

Overall, the day's trading reflected a recovery phase, boosted by key players like Reliance and Infosys, setting a positive tone for the upcoming trading sessions.

market, stocks, recovery