Benchmark stock market indices closed on a strong note Thursday, riding the wave of bullish sentiment across Dalal Street after the US Federal Reserve’s dovish stance fueled optimism among global and domestic investors. Both the Sensex and Nifty soared over 1%, driven largely by robust performances in auto, IT, and FMCG stocks, as investors cheered the possibility of rate cuts later this year.
The S&P BSE Sensex rallied 899.01 points, or 1.19%, to settle at 76,348.06, while the NSE Nifty50 advanced by 283.05 points, or 1.23%, to end at 23,190.65. This marked one of the strongest sessions in recent weeks, building on the positive momentum seen earlier in the week.
Market expert Aditya Gaggar, Director at Progressive Shares, explained that the index kicked off the weekly expiry session with a strong opening and sustained its upward trajectory throughout the day. He highlighted that all sectoral indices ended in the green, with auto, IT, and FMCG stocks standing out as the top performers. However, he noted that the rally was primarily focused on heavyweight, index-based stocks, leaving mid and small-cap segments trailing behind.
Vinod Nair, Head of Research at Geojit Financial Services, pointed out that the consistent decline in the US dollar index (DXY) played a significant role in easing Foreign Institutional Investor (FII) selling pressure, creating room for Domestic Institutional Investors (DII) to continue their buying spree. He added that positive domestic data indicating a month-on-month rise in economic activity, combined with the market’s anticipation of additional rate cuts by the US Fed, further bolstered equity market attractiveness. According to Nair, the current rally appears well-supported in the short term and is likely to continue, with a clearer direction emerging after Q4 FY25 corporate earnings are announced in April.
Among the top gainers on the Nifty, Bharti Airtel (BHARTIARTL) led the charge with a remarkable 4.08% surge, driven by strong subscriber growth and expectations of higher revenue from premium services. Titan Company followed closely, climbing 3.47% on the back of a positive demand outlook and upbeat sales forecasts. Eicher Motors (EICHERMOT) gained 2.61%, fueled by optimism around its strong Royal Enfield sales and expansion plans. Bajaj Auto and Britannia Industries also saw notable gains, advancing 2.57% each, supported by healthy demand and stable input costs.
On the downside, a handful of stocks ended in the red. IndusInd Bank (INDUSINDBK) emerged as the session’s biggest loser, falling 1.11% amid concerns over asset quality and slowing loan growth. Bajaj Finance slipped 0.59%, while retail giant Trent dropped 0.30% despite a positive sectoral performance. Shriram Finance (SHRIRAMFIN) also edged lower by 0.25%.
From a technical analysis perspective, Gaggar noted that the Nifty formed a bullish candle on the daily chart, breaking out from a Falling Wedge Formation — a bullish reversal pattern indicating a shift towards positive momentum. However, he cautioned that the index now appears overbought on the hourly chart, suggesting the possibility of sideways movement or a mild correction in the coming sessions. He identified 23,320 as the immediate resistance level, while support remains at 23,000.
Looking ahead, market analysts remain optimistic but cautious. With global factors such as the US Fed’s policy direction, crude oil prices, and geopolitical developments in focus, domestic factors like corporate earnings, inflation data, and RBI’s policy stance will also play a crucial role in determining the market's trajectory.
For now, the bulls seem firmly in control, with investor confidence riding high on supportive economic data, positive global cues, and strong performances from heavyweight stocks — all setting the stage for a potentially strong finish to the trading week.
