BIZ DESK
Domestic equity markets closed higher for the third consecutive session on Wednesday, supported by strong buying in IT, capital goods, and PSU stocks.
The Sensex advanced 324 points or 0.40%, ending at 81,425, while the Nifty 50 added 104 points to settle at 24,973, just shy of the psychological 25,000 mark. Broader indices also participated in the rally—BSE Midcap rose 0.8% and Smallcap gained 0.7%, reflecting a positive risk appetite.
Overall, the market’s rally was broad-based, with 17 out of 21 sectoral indices at the BSE logging gains. The strong performance of the IT and Capital Goods sectors suggests that investors are optimistic about India’s technological and industrial growth prospects, despite some headwinds in the auto and consumer sectors.
Top Movers
- Gainers: Bharat Electronics Ltd surged 4.2%, HCL Tech climbed 2.6%, and Bajaj Finance added 2.2%, lifting overall sentiment.
- Laggards: Mahindra & Mahindra slipped 2.5%, Maruti Suzuki declined 1.5%, and Tata Motors eased 0.9% on profit booking.
Sectoral Highlights
- IT & Tech: The standout sector, rallying for the second day. The IT index surged 2.5%, driven by strong global demand cues and rupee weakness aiding exporters.
- Capital Goods & Industrials: Gained nearly 1.9%, supported by robust order flows and infrastructure spending push.
- PSU & Defence: Defence-linked names like BEL fueled optimism with a sharp 4%+ jump.
- Banking & Financials: Showed mixed trends; private banks were steady while NBFCs like Bajaj Finance drove the sector.
- Auto: The weakest pocket, down 1.2%, as high input costs and muted sales outlook weighed.
- Consumer Discretionary & Durables: Both slipped marginally amid demand concerns in urban markets.
Outlook
Analysts said the Nifty faces stiff resistance near 25,000, while Sensex could consolidate around 81,500 levels. “IT stocks have taken leadership, but profit-taking in autos signals caution. Global cues and inflation data will remain key triggers,” a market strategist noted.
Sector-Wise Performance:
- Technology & IT: The IT sector was the clear leader for the second consecutive day, with strong gains. The IT Pack surged over 2.5%, and the overall IT index rose nearly 2.5%. This was buoyed by individual company performances, with HCL Tech rising by almost 2.6%. The positive momentum in this sector could be attributed to a mix of factors, including robust deal pipelines and a favorable global IT spending outlook.
- Capital Goods: The Capital Goods sector showed significant strength, adding almost 1.9%. This positive trend indicates continued confidence in infrastructure development and industrial growth. Bharat Electronics Limited, a key player in this space, was a top gainer in the Sensex pack, expanding by over 4.2%.
- Financials: The financial sector saw mixed but generally positive results. Bajaj Finance nearly 2.2%, contributing to the upward movement of the broader market. This suggests continued strength in consumer lending and financial services.
- Auto: The automotive sector was the primary laggard, dipping 1.2%. This decline was driven by major players like Mahindra and Mahindra, which fell nearly 2.5%, Maruti, which dipped above 1.5%, and Tata Motors, which decreased by 0.9%. This sector’s performance could be weighed down by concerns over rising input costs and a potential slowdown in consumer demand.
- Consumer Discretionary & Durables: These sectors also experienced a negative trend, losing over 0.5% and 0.2% respectively. This indicates a cautious consumer spending environment, which may be a point of concern for investors in the short term