Sensex gains 274 points, Nifty ends above 24,300 as markets rebound on bargain buying

MUMBAI: Domestic benchmark equity indices closed higher on Thursday amid mixed sectoral performance with bargain hunting driving a broad-based rally led by IT and auto. The Sensex closed in the green at 77,928.15, up 273.55 points or 0.35 per cent while Nifty closed at 24,317.15, up 66.95 points or 0.28 per cent.

Sectorally, Nifty Realty was the top drag, losing 2 per cent, followed by Nifty Chemicals (1.18 per cent). Nifty Auto emerged as the top sectoral gainer ending 1.63 per cent higher. In the broad market, most indices ended in the red.

On BSE, M&M, Maruti, Tech Mahindra, Reliance, SBI, Power Grid, Sun Pharma, NTPC, LT, Bajaj Finance among others were the top gainers. Adani Ports, BEL, Indi Go, ICICI Bank, Infosys, Trent among others were the top drags.

Market analyst Vipin Dixena noted, “Indian equities staged a solid recovery, with benchmarks reversing early weakness to close firmly in the green as short-covering and bargain hunting drove a broad-based rally led by IT and auto. The move was led by short-covering and bargain hunting after a sharp mid-week correction, supported by a stabilizing rupee and constructive FII flows.”

He further noted, “Technically, the reclaim of the 24,200-24,250 zone on Nifty is a positive sign, though sustained upside will depend on follow-through buying, softer crude, and continued institutional participation. The markets should be looked with buy on dips strategy.”

In the commodity market, Brent crude was trading at around USD 91.23 per barrel while crude oil was trading at around USD 84.49 per barrel. At the same time, gold was trading at around USD 4,069.57.

Kaynat Chainwala, AVP Commodity Research, Kotak Securities noted, “Brent holds near $90 and WTI above $84 today after Wednesday’s sharp reversal, with fresh reports of a strike in Iran’s West Azerbaijan province and a tanker explosion flagged in the southern Red Sea keeping the supply-risk premium intact.”

For precious metal, Chainwala said, “Spot gold holds steady near USD 4,060 an ounce, silver near USD 57.5, as markets digest the Fed’s status quo ahead of today’s US GDP, PCE inflation and jobless claims data. Gold had earlier pulled back to USD 4,030 and silver slipped below USD 57, easing after closing 1% higher yesterday, when gold rallied more than 3% intraday, rebounding from below $4,000 to above USD 4,115 before settling near USD 4,070 as the Fed held rates for a fifth straight meeting and the dollar fell to a one-week low near 100.8.” (ANI)