Nifty bank powers Indian stocks to soar for fourth straight session

MUMBAI: Indian stock markets on Thursday ended on a strong note, driven by the banking stocks. The stock market rose for the fourth straight day, with the Nifty at the National Stock Exchange (NSE) reclaiming 20,800, led by the financial stocks.

At the end of the trading, BSE Sensex stood at 78,553.20, up 1,508.91 points or 1.96 per cent, while Nifty was up 414.45 points or 1.77 per cent at 23,851.65.

In the sectoral indices at the NSE, all the indices traded in green. The telecom, PSU Bank, Oil and Gas, pharma, auto, energy, and private bank sectors saw an upswing of 1 to 2 per cent in the trading session.

In today’s trading, banking stocks were the standout performers, rallying on the back of easing CPI data and a normal monsoon forecast, which boosted hopes of a deeper rate cut cycle by the Reserve Bank of India.

Bank Nifty extended its rally for the fourth session in a row and closed the week with strong gains of 6.5 per cent. HDFC Bank’s share price hit a new 52-week high during the trading session.

“Index is currently placed near an all-time high as it continues to outperform. It has generated a breakout above a falling channel containing the entire decline and has also registered a faster retracement of the five-month decline in just 2 months, signalling strength,” said Bajaj Broking Research team in its note.

“We expect Bank Nifty to head towards the 54,800-55,000 levels in the coming weeks,” Bajaj’s note added.

According to the market analysts, US President Donald Trump announced tariff exemptions for smartphones and computers and signalled a possible pause on auto tariffs, which boosted sentiments.

On the other hand, the selling spree of Foreign Institutional Investors (FIIs) decreased significantly, said VLA Ambala, Co-Founder of Stock Market Today.

In the F&O, the index options recorded 34,971.62 in recent data, indicating a reversal view from a trading perspective, though stock options continue to see selling pressure, signalling stock-specific action while maintaining a bullish index outlook, Ambala added. (ANI)