Indian equity markets witnessed a surge today, with both the Sensex and Nifty indices closing in positive territory, driven primarily by gains in IT and metal stocks. The BSE Sensex climbed by 582.95 points, or 0.72%, to close at 81,790.12. The NSE Nifty 50 also advanced, gaining 183.40 points, or 0.74%, to end the day at 25,077.65, crossing the 25,000 mark.
The positive momentum was largely attributed to strong buying activity in banking and IT stocks, coupled with positive global cues and growing investor optimism as the Q2 earnings season approaches. This marks the third consecutive session of gains for the Indian benchmark index, which has collectively risen by approximately 1.9% over the past three trading days.
Among the top gainers on the Sensex were Tata Consultancy Services (TCS), Tech Mahindra, Axis Bank, Bajaj Finance, and Eternal, with their stocks rising between 2% and 3%. Conversely, Tata Steel, Adani Ports, Power Grid, and Titan experienced losses. The Nifty IT index spearheaded sectoral gains, jumping by 2.28%. The Nifty Private Bank, Financial Services, and Healthcare indices also closed in positive territory. However, Metal, FMCG, and Media shares experienced a slight dip of up to 1%.
Market analysts suggest that Nifty's decisive move above the 25,000 level, a key psychological and technical resistance point, signals a bullish turn in the market structure. Experts anticipate any dips toward the 25,000 zone to serve as a strong support level, with immediate resistance expected at 25,200 and 25,500.
The Bank Nifty also demonstrated a strong performance, maintaining its upward trajectory throughout the day. It crossed 56,100, reaching an intra-day high of 56,164. Experts have identified the next resistance levels for the Bank Nifty at 56,300–56,500, with support between 55,821–55,500.
Broader market trends mirrored the upturn, with the Nifty Midcap 100 gaining 0.89% and the Nifty Smallcap 100 adding 0.28%.
The positive sentiment in the Indian markets reflects global trends and investor confidence in the banking sector. HDFC Bank, a major player in the Nifty 50, saw a gain of 0.9%, while Kotak Mahindra Bank climbed 2% following reports of strong loan growth in the September quarter. Bajaj Finance also rose by 1.9% after reporting a 24% year-on-year increase in assets under management for the July-September period.
