Benchmark stock market indices experienced a significant rally, buoyed by optimism over potential Federal Reserve rate cuts. The S&P BSE Sensex soared by 1,439.55 points to close at an impressive 82,962.71, marking a substantial gain. Similarly, the NSE Nifty50 surged nearly 470.45 points to settle at 25,388.90. This positive momentum was largely driven by recent US inflation data, which has heightened expectations for a rate cut by the Federal Reserve shortly.
This upward trend was reflected across the broader market indices, which also ended the trading session on a high note. The decline in market volatility contributed to a favorable trading environment, allowing key sectors such as auto, banking, financial services, and information technology (IT) to post substantial gains. These sectors, in particular, played a pivotal role in driving the benchmark indices higher.
Among the standout performers on the Nifty50 were Hindalco, Bharti Airtel, Shriram Finance, NTPC, and Eicher Motors. These stocks showed remarkable growth, reflecting strong investor confidence. Conversely, the day saw declines in shares of companies like Nestle India, Asian Paints, SBI Life, TCS, and Sun Pharma, highlighting some of the day's laggards.
In a notable development, Zomato's shares surged to reach a new all-time high, fueled by positive views from brokerage firms that have boosted investor enthusiasm. This uptick in Zomato's stock reflects the market’s response to favorable analyst recommendations and optimistic projections about the company's performance.
On the downside, Granules India faced a severe setback, with its shares plummeting by 17%. This sharp decline followed a recent inspection by the USFDA at its Gagillapur FD facility, which resulted in six critical observations. The market reacted negatively to these findings, causing a significant drop in the company's stock price.
Aditya Gaggar, Director at Progressive Shares, observed that the market experienced a narrow range of fluctuations earlier in the day due to a lack of fresh triggers. However, the latter part of the trading session saw a vigorous rally, enabling the Index to reach a new high of 25,433.35.Â
Gaggar elaborated on the market dynamics, stating, "With a gain of 470.45 points, the Nifty50 ended the weekly expiry day at 25,388.90. Every sector saw advancements, with the Metal and Auto sectors standing out as the top performers. Although Mid and Small caps also posted gains, they underperformed compared to the frontline indices."
Looking at the technical aspects, Gaggar highlighted that the daily chart exhibited a robust bullish candle, indicating a strong grip by the bulls. He identified the next resistance level for the Nifty50 at 25,670, while the support level is anticipated at 25,250. This analysis suggests that the market is poised for further movements based on upcoming economic and corporate developments.
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