The Indian stock market mirrored the upward trend of its major Asian counterparts, fueled by optimism that the Federal Reserve may initiate a rate cut cycle, prompted by softer April inflation data in the US.
Japan’s Nikkei jumped 1.37 per cent and Korea’s KOSPI rose 0.82 per cent. Hang Seng saw a gain of 1.56 per cent.
However, major European markets traded lacklustre. France’s CAC 40 was down over half a per cent while the UK’s FTSE and Germany’s DAX were down 0.30 per cent each when the Sensex closed.
The US consumer price index (CPI) rose 0.3 per cent sequentially in April. The CPI increased 3.4 per cent year-on-year (YoY) after a 3.5 per cent rise in March.
The lower-than-expected rise in inflation prints raised optimism that the US Fed may start cutting rates in the second half of this year.
The Sensex opened 351 points higher at 73,338.24 compared to its previous close of 72,987.03 but failed to sustain the gains, dropping as much as 457 points during the session to reach its intraday low of 72,529.97. However, the index reversed direction again during the final hour of trade and closed 677 points, or 0.93 per cent, higher at 73,663.72.
The Nifty 50 opened at 22,319.20 against its previous close of 22,200.55 and touched its intraday high and low of 22,432.25 and 22,054.55 respectively. The index settled 203 points, or 0.92 per cent, higher at 22,403.85.
The mid- and small-cap indices also posted strong gains; the BSE Midcap index jumped 1.07 per cent, while the Smallcap index rose 0.85 per cent.
Nearly 200 stocks, including Hero MotoCorp, Mahindra and Mahindra, IndiGo, Ashok Leyland, Bharat Forge, Havells India, Hindustan Aeronautics and Siemens, hit their fresh 52-week highs in intraday trade on BSE.
The overall market capitalisation of the firms listed on BSE jumped to nearly ₹407.4 lakh crore from nearly ₹404.3 lakh crore in the previous session, making investors richer by about ₹3.1 lakh crore in a single session.
Also Read: Investors ‘most bullish’ on equities in almost 3 years: BofA Fund Manager Survey
Top Nifty 50 gainers today
Shares of Mahindra and Mahindra (up 3.98 per cent), Tata Consumer (up 2.76 per cent) and Bharti Airtel (up 2.60 per cent) closed as the top gainers in the Nifty 50 index. 38 stocks ended higher in the Nifty 50 index on Thursday.
Top Nifty 50 losers today
Shares of Maruti Suzuki (down 2.15 per cent), SBI (down 0.98 per cent) and Tata Motors (down 0.86 per cent) closed as the top losers today.
Sectoral indices today
Barring Nifty PSU Bank (down 0.88 per cent), all sectoral indices ended higher.
Nifty Consumer Durables (up 1.72 per cent), IT (up 1.66 per cent), Realty (up 1.63 per cent), Media (up 1.22 per cent) and Financial Services (up 1.09 per cent) closed with significant gains.
Nifty Bank ended 0.61 per cent higher, while the Private Bank index rose 0.67 per cent.
Expert view on markets
Vinod Nair, the head of research at Geojit Financial Services observed that the domestic market rose driven by strong global trends that pointed to lower-than-expected US consumer inflation figures, which suggests at least two interest rate cuts in 2024.
Nair added that buoyancy in the broader market continues with exports increasing despite global economic uncertainties, leading the heavyweights sectors, such as banking, IT, and industrials, to outperform.
Ajit Mishra, SVP of research at Religare Broking said the sustainability of this upward momentum could pave the way for further gains towards 22,600 levels.
“The participation of major players in the banking and IT sectors, coupled with cues from the US markets, is expected to be crucial going forward. Traders are advised to adjust their strategies accordingly, with focus on stock selection,” Mishra added.
Technical views on Nifty 50
Rupak De, a senior technical analyst at LKP Securities believes over the next few days, the bulls might have the upper hand in the market as the Nifty 50 moved above the critical moving average after several days.
“On the higher side, the Nifty might move towards 22,600 in the short term. Support on the lower end remains at 22,250; the sentiment is expected to remain strong as long as it holds above this level,” said De.
Jatin Gedia, a technical research analyst at Sharekhan by BNP Paribas, pointed out that on the daily charts, the Nifty has been in an pullback mode and now reached the 61.82 per cent Fibonacci retracement level of 22,430.
“The index has managed to close above the key daily moving averages which shall act as a support (22,330 – 22,270) in the case of a dip. Daily and hourly momentum indicators have triggered a positive crossover which is a buy signal. Thus, both price and momentum indicator is suggesting continuation of the up-move,” said Gedia.
“On the upside, 22,586 – 22,600 is the next crucial resistance to watch out for. On the downside, 22,200 should be kept as a trailing stop loss for the long positions,” Gedia said.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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Published: 16 May 2024, 03:30 PM IST
